Question 1

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

Accepted Answer

A)  it is costless for employers to discriminate against groups they do not like. 
B)  the wages of employees who are discriminated against will actually rise. 
C)  an employer who discriminates will experience higher costs. 
D)  discrimination by an employer will reduce production costs since the employer can pay lower wages. 
A)  it is costless for employers to discriminate against groups they do not like. 
B)  the wages of employees who are discriminated against will actually rise. 
C)  an employer who discriminates will experience higher costs. 
D)  discrimination by an employer will reduce production costs since the employer can pay lower wages.

Question 2

Which of the following best states the relationship between machinery and the earnings of labor?

Accepted Answer

A)  Machines tend to reduce the demand for labor, thereby reducing the earnings rate of labor. 
B)  Production of machinery creates jobs, thereby increasing the demand for (and wages of) labor. 
C)  High productivity per worker hour is a necessary ingredient for the attainment of high real earnings, and adoption of labor-saving machinery enhances the ability of labor to attain such high productivity. 
D)  Output and real earnings can always be increased whenever a machine can be substituted for a function previously performed by labor. 
A)  Machines tend to reduce the demand for labor, thereby reducing the earnings rate of labor. 
B)  Production of machinery creates jobs, thereby increasing the demand for (and wages of) labor. 
C)  High productivity per worker hour is a necessary ingredient for the attainment of high real earnings, and adoption of labor-saving machinery enhances the ability of labor to attain such high productivity. 
D)  Output and real earnings can always be increased whenever a machine can be substituted for a function previously performed by labor.

Question 3

If a firm refuses to hire any minorities due to a personal prejudice, its profits

Accepted Answer

A)  will increase markedly. 
B)  will decrease. 
C)  will not be affected. 
D)  will increase slightly. 
A)  will increase markedly. 
B)  will decrease. 
C)  will not be affected. 
D)  will increase slightly.

Question 4

In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would

Accepted Answer

A)  lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation. 
B)  result in a variety of product prices, but overall GDP would be unaffected. 
C)  be efficient if the wages were fixed at a high enough level. 
D)  reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers. 
A)  lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation. 
B)  result in a variety of product prices, but overall GDP would be unaffected. 
C)  be efficient if the wages were fixed at a high enough level. 
D)  reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers.

Question 5

Suppose that Japanese and Chinese workers are equally productive, but Japanese workers receive a higher wage than Chinese workers. Then, refusing to hire Chinese workers would

Accepted Answer

A)  increase the firm's costs. 
B)  decrease the firm's costs. 
C)  increase the firm's profits. 
D)  decrease the firm's profits. 
E)  do both a and d. 
A)  increase the firm's costs. 
B)  decrease the firm's costs. 
C)  increase the firm's profits. 
D)  decrease the firm's profits. 
E)  do both a and d.

Question 6

Which of the following is most likely to decrease the market wage rate in a job category?

Accepted Answer

A)  The employer provides a generous pension plan. 
B)  The work is widely viewed as safe and not stressful. 
C)  The job is widely viewed as interesting and prestigious. 
D)  all of the above 
A)  The employer provides a generous pension plan. 
B)  The work is widely viewed as safe and not stressful. 
C)  The job is widely viewed as interesting and prestigious. 
D)  all of the above

Question 7

Working conditions, prestige, variety, location, employee freedom, and employee responsibilities are all examples of

Accepted Answer

A)  the tools of employment discrimination. 
B)  sociological factors affecting employment. 
C)  pecuniary job characteristics. 
D)  non-pecuniary job characteristics. 
A)  the tools of employment discrimination. 
B)  sociological factors affecting employment. 
C)  pecuniary job characteristics. 
D)  non-pecuniary job characteristics.

Question 8

Which of the following is true of America's millionaires?

Accepted Answer

A)  Most millionaires inherited at least half of their wealth. 
B)  Millionaires are far more likely than others to be self-employed entrepreneurs. 
C)  It is virtually impossible to achieve this status by saving and investing over a lengthy period of time. 
D)  Only about 20 percent of the millionaires in the United States have college degrees. 
A)  Most millionaires inherited at least half of their wealth. 
B)  Millionaires are far more likely than others to be self-employed entrepreneurs. 
C)  It is virtually impossible to achieve this status by saving and investing over a lengthy period of time. 
D)  Only about 20 percent of the millionaires in the United States have college degrees.

Question 9

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 higher earnings has a larger quantity of human capital. 
D)  Any of the above statements could, either partially or entirely, explain the difference in the mean earnings. 
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 higher earnings has a larger quantity of human capital. 
D)  Any of the above statements could, either partially or entirely, explain the difference in the mean earnings.

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

Which of the following best states the relationship between machinery and the earnings of labor?

If a firm refuses to hire any minorities due to a personal prejudice, its profits

In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would

Suppose that Japanese and Chinese workers are equally productive, but Japanese workers receive a higher wage than Chinese workers. Then, refusing to hire Chinese workers would

Which of the following is most likely to decrease the market wage rate in a job category?

Working conditions, prestige, variety, location, employee freedom, and employee responsibilities are all examples of

Which of the following is true of America's millionaires?

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

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

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

Which of the following best states the relationship between machinery and the earnings of labor?

If a firm refuses to hire any minorities due to a personal prejudice, its profits

In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would

Suppose that Japanese and Chinese workers are equally productive, but Japanese workers receive a higher wage than Chinese workers. Then, refusing to hire Chinese workers would

Which of the following is most likely to decrease the market wage rate in a job category?

Working conditions, prestige, variety, location, employee freedom, and employee responsibilities are all examples of

Which of the following is true of America's millionaires?

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

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