Question 1

Education and on-the-job training are sources of human capital.

Accepted Answer

A) True 
 B)False

Question 2

Business owners who care only about making money are

Accepted Answer

A)  likely to discriminate against certain groups of workers.
B)  likely to be replaced by discriminating businesses.
C)  more concerned about racial discrimination than gender discrimination.
D)  at an advantage when competing against those who practice discrimination.E) A) and B)
F) A) and C)

Question 3

According to the signaling theory of education,

Accepted Answer

A)  schooling sends signals to employers in much the same way that advertising sends signals to consumers.
B)  a person becomes more productive by earning a college degree.
C)  education is less important than natural ability.
D)  All of the above are correct.E) All of the above
F) A) and B)

Question 4

Most economists believe that the higher average salaries earned by men in comparison to women arise from

Accepted Answer

A)  discrimination.
B)  a variety of factors,including differences in human capital and compensating differentials; few economists believe that gender discrimination in earnings exists.
C)  differences in human capital as the primary reason.
D)  a variety of factors,including differences in human capital,compensating differentials,and discrimination.E) None of the above
F) A) and B)

Question 5

Sometimes workers earn higher wages through chance.

Accepted Answer

A) True 
 B)False

Question 6

Compensating differentials are differences in wages related to the characteristics of a job.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would be considered human capital?

Accepted Answer

A)  the financial capital a person earns over a lifetime of investing
B)  the machinery a worker uses to produce a product
C)  the training a worker receives when starting a new job
D)  the break room in a factory where employees go to have coffeeE) A) and B)
F) None of the above C

Question 8

A difference in wages between a highly-educated worker and a less-educated worker

Accepted Answer

A)  may be due to a difference in the amounts of human capital between the workers..
B)  may be a signal that the market is indifferent to a worker's level of human capital.
C)  is considered unfair by economists.
D)  is considered unfair by everyone.E) All of the above
F) B) and C) A

Question 9

Which of the following is the most likely outcome of minimum wage laws?

Accepted Answer

A)  an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
B)  an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms
C)  a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms
D)  a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firmsE) A) and C)
F) All of the above

Question 10

In the presence of discrimination by customers,

Accepted Answer

A)  market forces nevertheless always work to prevent discriminatory wage differentials.
B)  discriminatory wage differentials can exist,but only if firms refrain from maximizing their profits.
C)  discriminatory wage differentials can exist,but only if government reinforces customers' practices by passing laws that mandate discrimination.
D)  discriminatory wage differentials can exist,even in the absence of discriminatory practices by firms or by government.E) C) and D)
F) A) and D)

Question 11

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

Accepted Answer

A)  the theory of compensating differentials
B)  the efficient-market hypothesis
C)  human-capital theory
D)  signaling theoryE) A) and B)
F) A) and C)

Question 12

A signaling theory of education suggests that educational attainment

Accepted Answer

A)  is a signal of high marginal productivity.
B)  is correlated with natural ability.
C)  increases the productivity of low-ability workers.
D)  Both a and b are correct.E) A) and C)
F) None of the above

Question 13

Consumers are often a primary source of discrimination in labor markets.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would be considered an investment in human capital?

Accepted Answer

A)  education
B)  a teacher's blackboard
C)  the purchase of a new computer to enhance labor productivity
D)  All of the above are correct.E) None of the above
F) All of the above A

Question 15

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

Accepted Answer

A)  Good looks are an innate ability for some jobs,which results in higher productivity and higher wages.
B)  Good looks may be an indirect measure of other types of ability such as attention to detail.
C)  If better-looking people earn more than average-looking people,employers may be discriminating based on personal appearance.
D)  All of the above could explain the beauty premium.E) All of the above
F) A) and D)

Question 16

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Accepted Answer

The theory of signaling suggests that th...

Question 17

It is likely that,if we could measure the quality as well as the quantity of education,

Accepted Answer

A)  the human-capital argument would become less compelling as a means of explaining wage differentials between white workers and black workers.
B)  the human-capital argument would become less compelling as a means of explaining wage differentials between male workers and female workers.
C)  wage differentials between white workers and black workers would be more puzzling than they are now.
D)  wage differentials between white workers and black workers would be more fully explained.E) A) and D)
F) C) and D)

Question 18

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?

Accepted Answer

A)  Public school teacher jobs are difficult.
B)  Public school teachers are required to be college graduates.
C)  Public school teachers belong to a union.
D)  Teaching in a public school has a high element of personal satisfaction.E) A) and B)
F) All of the above

Question 19

A college degree makes a person more productive according to

Accepted Answer

A)  both the human-capital and the signaling theories of education.
B)  the human-capital but not the signaling theory of education.
C)  the signaling but not the human-capital theory of education.
D)  neither the human-capital nor the signaling theory of education.E) All of the above
F) B) and C)

Question 20

If men,on average,earn 20 percent more than women in a particular occupation,

Accepted Answer

A)  this is clear evidence of discrimination.
B)  some of this differential could be due to differences in educational levels.
C)  some of this differential could be due to differences in human capital.
D)  Both b and c are correct.E) A) and C)
F) C) and D)

Exam 19: Earnings and Discrimination

Education and on-the-job training are sources of human capital.

Correct AnswerverifiedShow Answer

Business owners who care only about making money are

Correct AnswerverifiedShow Answer

According to the signaling theory of education,

Correct AnswerverifiedShow Answer

Most economists believe that the higher average salaries earned by men in comparison to women arise from

Correct AnswerverifiedShow Answer

Sometimes workers earn higher wages through chance.

Correct AnswerverifiedShow Answer

Compensating differentials are differences in wages related to the characteristics of a job.

Correct AnswerverifiedShow Answer

Which of the following would be considered human capital?

Correct AnswerverifiedC

A difference in wages between a highly-educated worker and a less-educated worker

Correct AnswerverifiedA

Which of the following is the most likely outcome of minimum wage laws?

Correct AnswerverifiedShow Answer

In the presence of discrimination by customers,

Correct AnswerverifiedShow Answer

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

Correct AnswerverifiedShow Answer

A signaling theory of education suggests that educational attainment

Correct AnswerverifiedShow Answer

Consumers are often a primary source of discrimination in labor markets.

Correct AnswerverifiedShow Answer

Which of the following would be considered an investment in human capital?

Correct AnswerverifiedA

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

Correct AnswerverifiedShow Answer

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Correct AnswerverifiedThe theory of signaling suggests that th...View AnswerShow Answer

It is likely that,if we could measure the quality as well as the quantity of education,

Correct AnswerverifiedShow Answer

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?

Correct AnswerverifiedShow Answer

A college degree makes a person more productive according to

Correct AnswerverifiedShow Answer

If men,on average,earn 20 percent more than women in a particular occupation,

Correct AnswerverifiedShow Answer

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C

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A

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A

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The theory of signaling suggests that th...
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