Question 1

What is the most probable reason why garbage collectors have higher wages than bookkeepers?

Accepted Answer

A)  Employment discrimination 
B)  A high unionization rate for bookkeepers 
C)  A higher educational requirement for garbage collectors than bookkeepers 
D)  The nonmonetary attractiveness of garbage collection causes fewer people to want to be garbage collectors. 
A)  Employment discrimination 
B)  A high unionization rate for bookkeepers 
C)  A higher educational requirement for garbage collectors than bookkeepers 
D)  The nonmonetary attractiveness of garbage collection causes fewer people to want to be garbage collectors.

Question 2

Other things constant, which of the following job characteristics would be most likely to result in a higher pay rate for the job?

Accepted Answer

A)  The employer provides low cost child-care services on the premises. 
B)  The job is widely viewed as prestigious. 
C)  The job requires substantial amounts of stressful out-of-town travel. 
D)  The job involves working in pleasant surroundings. 
A)  The employer provides low cost child-care services on the premises. 
B)  The job is widely viewed as prestigious. 
C)  The job requires substantial amounts of stressful out-of-town travel. 
D)  The job involves working in pleasant surroundings.

Question 3

If there is employment discrimination against minorities, this will cause the

Accepted Answer

A)  supply of their services to increase, and their wages to fall. 
B)  demand for their services to decline, and their wages to fall. 
C)  supply of their services to decline, and their wages to rise. 
D)  demand for their services to decline, and their wages to rise. 
A)  supply of their services to increase, and their wages to fall. 
B)  demand for their services to decline, and their wages to fall. 
C)  supply of their services to decline, and their wages to rise. 
D)  demand for their services to decline, and their wages to rise.

Question 4

Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be

Accepted Answer

A)  higher than the wages of workers with otherwise similar jobs. 
B)  lower than the wages of workers with otherwise similar jobs. 
C)  below market equilibrium. 
D)  above market equilibrium. 
A)  higher than the wages of workers with otherwise similar jobs. 
B)  lower than the wages of workers with otherwise similar jobs. 
C)  below market equilibrium. 
D)  above market equilibrium.

Question 5

Happyland is a country devoted to consumption. The inhabitants spend all of their income on pleasurable things and virtually none on capital investment, human or otherwise. Seriousland is frugal, spending very little on consumption and a great deal on human and physical capital. Ten years from now, which country would you prefer to inhabit?

Accepted Answer

Clearly, Happyland cannot continue in it

Question 6

Which one of the following is most likely to reduce the mobility of labor between jobs?

Accepted Answer

A)  an increase in the minimum wage 
B)  legislation relaxing licensing requirements for entry into many occupations 
C)  the taxation of unemployment compensation in the same manner as income from other sources 
D)  both b and c above 
A)  an increase in the minimum wage 
B)  legislation relaxing licensing requirements for entry into many occupations 
C)  the taxation of unemployment compensation in the same manner as income from other sources 
D)  both b and c above

Question 7

Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?

Accepted Answer

A)  The group with the lower earnings is being discriminated against. 
B)  The group with the lower earnings is less productive. 
C)  The group with the lower earnings has less human capital. 
D)  Any of the above statements could, either partially or entirely, explain this difference. 
A)  The group with the lower earnings is being discriminated against. 
B)  The group with the lower earnings is less productive. 
C)  The group with the lower earnings has less human capital. 
D)  Any of the above statements could, either partially or entirely, explain this difference.

Question 8

Ethyl does not like redheads and refuses to hire any at her business. Paul was the perfect job candidate on paper, but the personal interview revealed that he was a redhead. Are there any costs to Ethyl for not hiring Paul?

Accepted Answer

Economics suggests that this type of dis

Question 9

Which of the following would cause the demand for computer programmers to increase?

Accepted Answer

A)  a decline in the productivity of computer programmers 
B)  an increase in the productivity of computer programmers 
C)  an increase in the wages of computer programmers due to legislative action (that is, the establishment of a price floor for computer programmers) 
D)  a reduction in the price of a competitive input that can be substituted for computer programmers 
A)  a decline in the productivity of computer programmers 
B)  an increase in the productivity of computer programmers 
C)  an increase in the wages of computer programmers due to legislative action (that is, the establishment of a price floor for computer programmers) 
D)  a reduction in the price of a competitive input that can be substituted for computer programmers

Question 10

Which of the following is true?

Accepted Answer

A)  Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men. 
C)  If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so. 
D)  The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination. 
A)  Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men. 
C)  If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so. 
D)  The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination.

Question 11

Technological progress generally has the effect of

Accepted Answer

A)  creating permanently higher levels of unemployment. 
B)  freeing resources that can now go to other uses. 
C)  lowering the national standard of living. 
D)  doing all of the above. 
A)  creating permanently higher levels of unemployment. 
B)  freeing resources that can now go to other uses. 
C)  lowering the national standard of living. 
D)  doing all of the above.

Question 12

Suppose the mean earnings of two groups differ. Which of the following would be the logical conclusion?

Accepted Answer

A)  The group with the lowest earnings must be the victim of employment discrimination. 
B)  The group with the lowest earnings must be less productive. 
C)  The group with the highest earnings is more highly motivated and materialistic. 
D)  Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination. 
A)  The group with the lowest earnings must be the victim of employment discrimination. 
B)  The group with the lowest earnings must be less productive. 
C)  The group with the highest earnings is more highly motivated and materialistic. 
D)  Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination.

Question 13

Firms will only adopt more automated methods of production when

Accepted Answer

A)  they reduce the need for workers. 
B)  they lower production costs. 
C)  they lengthen the production process. 
D)  other firms in the industry are doing it. 
A)  they reduce the need for workers. 
B)  they lower production costs. 
C)  they lengthen the production process. 
D)  other firms in the industry are doing it.

Question 14

Business owners who care only about maximizing profits 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 employment discrimination. 
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 employment discrimination.

Question 15

Economic theory suggests that the standard of living of American workers would rise if:

Accepted Answer

A)  the minimum wage were doubled. 
B)  the knowledge and skills of workers improved. 
C)  older workers were forced to retire earlier, opening up jobs for younger workers. 
D)  people bought only American products. 
A)  the minimum wage were doubled. 
B)  the knowledge and skills of workers improved. 
C)  older workers were forced to retire earlier, opening up jobs for younger workers. 
D)  people bought only American products.

Question 16

(I) Productivity growth in the United States since 1996 has been more rapid than it was during the previous two decades. (II) Economists believe that the more rapid productivity growth since 1996 is in large part due to the computer revolution and related technological innovations.

Accepted Answer

A)  Both I and II are true. 
B)  I is true; II is false. 
C)  I is false; II is true. 
D)  Both I and II are false. 
A)  Both I and II are true. 
B)  I is true; II is false. 
C)  I is false; II is true. 
D)  Both I and II are false.

Question 17

The fact that wage differentials continue to exist across different groups of workers leads economists to believe that

Accepted Answer

A)  discrimination by customers is the most common type of economic discrimination. 
B)  differences in human capital and job characteristics must be important in explaining the differences in wages. 
C)  firms apparently are not profit maximizers. 
D)  the market has failed to properly allocate wages to different workers. 
A)  discrimination by customers is the most common type of economic discrimination. 
B)  differences in human capital and job characteristics must be important in explaining the differences in wages. 
C)  firms apparently are not profit maximizers. 
D)  the market has failed to properly allocate wages to different workers.

Question 18

Which of the following is most likely to reduce the nominal market wage in a job category?

Accepted Answer

A)  The job requires employees to work the night shift from 11 p.m. to 7 a.m. 
B)  The job is prestigious, and the work is quite interesting. 
C)  The job is widely viewed as dangerous. 
D)  The job requires employees to move from city to city quite often. 
A)  The job requires employees to work the night shift from 11 p.m. to 7 a.m. 
B)  The job is prestigious, and the work is quite interesting. 
C)  The job is widely viewed as dangerous. 
D)  The job requires employees to move from city to city quite often.

Question 19

If all persons had identical preferences and productivity factors (ability, skill level, education, experience, etc.), the highest paying jobs would be the most

Accepted Answer

A)  prestigious. 
B)  convenient. 
C)  undesirable. 
D)  easily learned. 
A)  prestigious. 
B)  convenient. 
C)  undesirable. 
D)  easily learned.

Question 20

New technological advancements, such as robots are

Accepted Answer

A)  harmful because they put people out of work. 
B)  helpful because they improve worker productivity. 
C)  harmful because robots are likely to have electrical problems which could cause injuries to people. 
D)  both a and c above. 
A)  harmful because they put people out of work. 
B)  helpful because they improve worker productivity. 
C)  harmful because robots are likely to have electrical problems which could cause injuries to people. 
D)  both a and c above.

What is the most probable reason why garbage collectors have higher wages than bookkeepers?

Other things constant, which of the following job characteristics would be most likely to result in a higher pay rate for the job?

If there is employment discrimination against minorities, this will cause the

Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be

Which one of the following is most likely to reduce the mobility of labor between jobs?

Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?

Ethyl does not like redheads and refuses to hire any at her business. Paul was the perfect job candidate on paper, but the personal interview revealed that he was a redhead. Are there any costs to Ethyl for not hiring Paul?

Which of the following would cause the demand for computer programmers to increase?

Which of the following is true?

Technological progress generally has the effect of

Suppose the mean earnings of two groups differ. Which of the following would be the logical conclusion?

Firms will only adopt more automated methods of production when

Business owners who care only about maximizing profits are

Economic theory suggests that the standard of living of American workers would rise if:

(I) Productivity growth in the United States since 1996 has been more rapid than it was during the previous two decades. (II) Economists believe that the more rapid productivity growth since 1996 is in large part due to the computer revolution and related technological innovations.

The fact that wage differentials continue to exist across different groups of workers leads economists to believe that

Which of the following is most likely to reduce the nominal market wage in a job category?

If all persons had identical preferences and productivity factors (ability, skill level, education, experience, etc.), the highest paying jobs would be the most

New technological advancements, such as robots are

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Applying the Basics: Special Topics in Economics

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Exam 13: Earnings, Productivity, and the Job Market

What is the most probable reason why garbage collectors have higher wages than bookkeepers?

Other things constant, which of the following job characteristics would be most likely to result in a higher pay rate for the job?

If there is employment discrimination against minorities, this will cause the

Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be

Which one of the following is most likely to reduce the mobility of labor between jobs?

Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?

Ethyl does not like redheads and refuses to hire any at her business. Paul was the perfect job candidate on paper, but the personal interview revealed that he was a redhead. Are there any costs to Ethyl for not hiring Paul?

Which of the following would cause the demand for computer programmers to increase?

Which of the following is true?

Technological progress generally has the effect of

Suppose the mean earnings of two groups differ. Which of the following would be the logical conclusion?

Firms will only adopt more automated methods of production when

Business owners who care only about maximizing profits are

Economic theory suggests that the standard of living of American workers would rise if:

(I) Productivity growth in the United States since 1996 has been more rapid than it was during the previous two decades. (II) Economists believe that the more rapid productivity growth since 1996 is in large part due to the computer revolution and related technological innovations.

The fact that wage differentials continue to exist across different groups of workers leads economists to believe that

Which of the following is most likely to reduce the nominal market wage in a job category?

If all persons had identical preferences and productivity factors (ability, skill level, education, experience, etc.), the highest paying jobs would be the most

New technological advancements, such as robots are

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Applying the Basics: Special Topics in Economics

Filters