Question 1

Which of the following explains the "beauty premium" differences in wages?
A)People who spend time on their personal appearance may send a signal that they are more productive workers.
B)Personal appearance and intelligence are inversely related.
C)The "superstar phenomenon" explains the "beauty premium."
D)Better-looking people are more efficient; thus, they are paid an efficiency wage.

Accepted Answer

Studies have suggested that there is a positive correlation between physical attractiveness and productivity/success in the workplace, leading to the belief that better-looking people may work harder and contribute more to the organization, resulting in higher wages. This is known as the "beauty premium."

Question 2

Which of the following describes the labor market for personal-service workers? (i)	The supply of workers is increasing as workers displaced by technological innovations seek jobs in the personal-services sector.
(ii)	The pay of these workers is increasing.
(iii)	Legal and undocumented immigrants often work in this sector.
(iv)	Most personal-service jobs require post-high school education or training.
A)(i) and (ii) only
B)(i) and (iii) only
C)(i), (ii), and (iii) only
D)(i), (ii), (iii), and (iv)

Accepted Answer

Option (i) is true, as technological innovations have led to displacement of workers in industries like manufacturing, leading to an increasing supply of workers seeking jobs in the personal-services sector. Option (ii) is not entirely true, as the pay of personal-service workers is often low and may not be increasing. 
Option (iii) is true, as both legal and undocumented immigrants often work in the personal-services sector. Option (iv) is not true, as most personal-service jobs do not require post-high school education or training.

Question 3

Which of the following explains the "beauty premium" differences in wages?
A)Better-looking people are preferred by customers; thus, employers will pay them higher wages than average-looking people.
B)People who project an attractive personal appearance may be more intelligent than average-looking people; thus, employers will pay them higher wages than average-looking people.
C)Average-looking people are preferred by customers; thus, employers will pay them higher wages than better-looking people.
D)Both a and b are correct.

Accepted Answer

Both a and b are correct.

Question 4

Certain factors that are probably important in determining wages are nevertheless difficult to measure.Consequently,labor economists find those factors difficult to incorporate into their studies of labor markets and wages.Those factors include
A)effort and natural ability.
B)natural ability and years of experience.
C)years of experience and job characteristics.
D)race and job characteristics.

Accepted Answer

While natural ability is generally recognized as an important factor in determining wages, it is difficult to quantify and measure. Similarly, effort is also important but difficult to measure accurately. Therefore, labor economists often struggle to incorporate these two factors into their studies of labor markets and wages. Other factors such as years of experience and job characteristics are relatively easier to measure and incorporate. Finally, race should not be a factor in determining wages and its inclusion in any study should be avoided.

Question 5

In empirical analyses of factors that help explain wages,
A)effort and ability are not likely to contribute to large differences in wages in the U.S.economy.
B)economists typically find that measurable factors explain less than half of the variation in wages.
C)economists typically find few factors that are not explicitly measurable.
D)unmeasurable influences on wage differences are found to be quite small.

Accepted Answer

Empirical analyses of factors that help explain wages typically find that measurable factors explain less than half of the variation in wages. This suggests that there are significant unmeasurable factors that also contribute to wage differences. Effort and ability may be difficult to quantify and measure, but they can still play a role in determining wages. Additionally, economists may not be able to identify all of the relevant factors that contribute to wage differences, meaning some unmeasurable influences may still be present.

Question 6

Which of the following statements is correct? (i)	Since the 1940s,the number of American workers employed in the manufacturing sector has declined from 30 percent to 10 percent.
(ii)	Since 1910,the number of Americans working as farmers has declined from 33 percent to 3 percent.
(iii)	Since 1995,global industrial output has fallen by more than 30 percent.
(iv)	Productivity increases are one reason for the declining number of manufacturing jobs.
A)(i) and (ii) only
B)(i), (ii), and (iii) only
C)(i), (ii), and (iv) only
D)(i), (ii), (iii), and (iv)

Accepted Answer

Statements (i), (ii), and (iv) are correct. The decline in manufacturing jobs is due to increased productivity and automation, while the decline in farming jobs is due to industrialization and urbanization. Statement (iii) is incorrect as global industrial output has generally increased, not decreased.

Question 7

The number of American workers employed in the manufacturing sector has
A)declined from 30 percent in the 1940s to 10 percent today.
B)increased from 10 percent in the 1940s to 30 percent today.
C)declined, which has contributed to the decline in global industrial output.
D)increased more rapidly than the increase in farming jobs.

Accepted Answer

The statement "declined from 30 percent in the 1940s to 10 percent today" accurately reflects the trend in American manufacturing employment.

Question 8

Which of the following are examples of changing employment trends? (i)	Technological advances have replaced a great many routine jobs in the U.S.such as bank tellers and telephone operators.
(ii)	The number of people wanting to work in the personal services sector in the U.S.is increasing.
(iii)	Employment in the U.S.agricultural sector has declined by about 30 percentage points in the last century.
(iv)	Employment in the U.S.manufacturing sector has declined,while employment in manufacturing has increased worldwide.
A)(i) and (ii) only
B)(i), (ii), and (iii) only
C)(i), (ii), and (iv) only
D)(i), (ii), (iii), and (iv)

Accepted Answer

The answer of Which of the following are examples of...

Question 9

Which of the following is an economic explanation for the "beauty premium"?
A)Employers pay very attractive women less than average-looking women because they believe them to be less intelligent.
B)Employers pay above-average-looking men more than above-average-looking women.
C)Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women.
D)Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.

Accepted Answer

The "beauty premium" refers to the idea that above-average-looking people are paid more than average-looking people for the same job. One economic explanation for this is that customers prefer to deal with better-looking individuals, so employers may be willing to pay more for above-average-looking employees, especially women, who are often in customer-facing roles.

Question 10

When economists study wages,they relate a worker's wage to those variables that are most subject to measurement.Which of the following are most likely to be unmeasurable?
A)years of schooling, age, and years of experience
B)job characteristics, gender, and race
C)ability, effort, and chance
D)gender, race, and geographic location

Accepted Answer

Ability, effort, and chance are often difficult to measure accurately and precisely. Variables such as years of schooling, age, and years of experience can be easily quantified, and job characteristics, gender, and race can also be measured using objective criteria. However, personal attributes such as ability, effort, and chance are more difficult to measure, and subjective biases can influence how they are perceived and evaluated.

Question 11

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm.Unfortunately for the student,the internship is unpaid.Is it ever economically beneficial to accept an unpaid job?
A)Yes, because the experience gained during the internship would increase the student's human capital.
B)No, because the opportunity cost is too high.
C)No, because the student is signaling to future employers that he or she is willing to accept low wages.
D)Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.

Accepted Answer

It is economically beneficial to accept an unpaid job if it increases the individual's human capital. The experience gained during the internship could provide valuable skills and knowledge that would be useful for future job opportunities. Additionally, the internship could also provide networking opportunities that could lead to future job prospects. While the opportunity cost of accepting an unpaid job is high, the long-term benefits of gaining valuable experience and building a professional network can outweigh the short-term costs.

Question 12

Which of the following statements correctly identifies the shift in employment in the manufacturing sector in the United States?
A)In the 1940s, about 10 percent of American workers were employed in the manufacturing sector.
B)Today, about 30 percent of American workers are employed in the manufacturing sector.
C)The decline in jobs in the manufacturing sector mirrors a previous decline in employment in the U.S.agricultural sector.
D)Both a and b are correct.

Accepted Answer

The statement that correctly identifies the shift in employment in the manufacturing sector in the United States is "The decline in jobs in the manufacturing sector mirrors a previous decline in employment in the U.S. agricultural sector." This statement is true, as both sectors have seen a decrease in employment due to technological advances and increased efficiency. Option A is incorrect, as in the 1940s, a larger percentage of American workers were employed in the manufacturing sector. Option B is incorrect, as the percentage of American workers employed in the manufacturing sector has actually decreased over time. Option D is incorrect, as statement B is incorrect.

Question 13

Studies of wages by labor economists indicate that measurable variables such as age,job characteristics,years of education,and years of experience account for
A)virtually none of the variation in wages in our economy.
B)some, but less than 50 percent of the variation in wages in our economy.
C)about 75 percent of the variation in wages in our economy.
D)almost all of the variation in wages in our economy.

Accepted Answer

While measurable variables such as age, job characteristics, years of education, and years of experience do have some impact on wages, studies have shown that they only account for some, but less than 50 percent of the variation in wages. Other factors such as discrimination, bargaining power, and industry-specific skills also play a significant role in determining wages.

Question 14

Why do major-league baseball players get paid more than minor-league players?
A)Major-league players are better athletes.
B)The higher wage reflects a compensating differential.
C)Playing in the major leagues in more pleasant then playing in the minor leagues.
D)The higher wage is often due to educational discrepancies.

Accepted Answer

The answer of Why do major-league baseball players get paid...

Question 15

Which of the following statements is not correct?
A)Both the human capital theory and the signaling theory of education could explain why college graduates earn more than high school graduates.
B)The signaling theory of education suggests that the ability to complete a college degree is correlated with the ability to perform well in the labor market.
C)If the human capital theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.
D)If the signaling theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.

Accepted Answer

If the human capital theory of education is correct, paying for additional schooling for all workers would increase their skills and knowledge (human capital), which would subsequently increase wages. Therefore, statement C is not correct.

Question 16

As more companies rely on computer databases and less on filing cabinets,the (i)	demand for computer programmers will rise.
(ii)	wage paid to filing clerks will rise.
(iii)	wage paid to computer programmers will rise.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii), and (iii)

Accepted Answer

As more companies rely on computer databases, the demand for computer programmers will rise. This means that the wage paid to computer programmers will also rise. However, there is no indication that the wage paid to filing clerks will rise, as their job responsibilities and demand decrease with the shift to computer databases. Therefore, the best choice is (i) and (iii).

Question 17

Which of the following statements is not correct?
A)The U.S.is experiencing an increase in the types of jobs where workers identify and solve new problems.The wages for these jobs are also rising.
B)The U.S.is experiencing an increase in personal service jobs.The wages for these jobs are also rising.
C)Technological advancements have replaced many routine jobs such as bank tellers and telephone operators.
D)Manufacturing employment has decreased world-wide.

Accepted Answer

Personal service jobs typically have lower wages compared to other types of jobs. While there may be an increase in these jobs, it is unlikely that their wages are also rising significantly.

Question 18

The "beauty premium" can be explained by the fact that
A)marginal productivity in all occupations has a physical dimension.
B)in some occupations, physical attractiveness of workers may enhance the value of their marginal product.
C)beauty acts as an implicit signal of innate intelligence.
D)beautiful people are likely to reflect "good breeding."

Accepted Answer

The "beauty premium" refers to the phenomenon where individuals who are considered more physically attractive earn higher wages than those who are not. This can be explained in some occupations where the physical attractiveness of workers may enhance the value of their marginal product, such as in industries like modeling or customer service where the appearance of workers is an important factor.

Question 19

Which of the following statements is true of wages,educational attainment,and gender?
A)Male workers are compensated for attending college, while female workers generally are not.
B)Female workers are compensated for attending college, while male workers generally are not.
C)Both genders receive a higher wage for attending college.
D)Neither gender receives a higher wage for attending college.

Accepted Answer

Studies consistently show that both men and women with higher levels of educational attainment earn higher wages than those without. Therefore, both genders receive a higher wage for attending college.

Question 20

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"
A)America is likely to lose even more manufacturing jobs to China and India.
B)labor productivity has fallen, which has caused employment to fall as well.
C)workers who have more education and better problem-solving skills are likely to work in higher-paying jobs.
D)the pay for personal-service workers is likely to rise.

Accepted Answer

The widening income gap suggests that workers with more education and better problem-solving skills (symbolic analysts) are likely to work in higher-paying jobs. This does not necessarily mean that manufacturing jobs will be lost or that labor productivity has fallen. It also does not suggest that the pay for personal-service workers is likely to rise.

Quiz 19: Earnings and Discrimination

Which of the following explains the "beauty premium" differences in wages?

Which of the following explains the "beauty premium" differences in wages?

Certain factors that are probably important in determining wages are nevertheless difficult to measure.Consequently,labor economists find those factors difficult to incorporate into their studies of labor markets and wages.Those factors include

In empirical analyses of factors that help explain wages,

The number of American workers employed in the manufacturing sector has

Which of the following is an economic explanation for the "beauty premium"?

When economists study wages,they relate a worker's wage to those variables that are most subject to measurement.Which of the following are most likely to be unmeasurable?

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm.Unfortunately for the student,the internship is unpaid.Is it ever economically beneficial to accept an unpaid job?

Which of the following statements correctly identifies the shift in employment in the manufacturing sector in the United States?

Studies of wages by labor economists indicate that measurable variables such as age,job characteristics,years of education,and years of experience account for

Why do major-league baseball players get paid more than minor-league players?

Which of the following statements is not correct?

As more companies rely on computer databases and less on filing cabinets,the (i) demand for computer programmers will rise. (ii) wage paid to filing clerks will rise. (iii) wage paid to computer programmers will rise.

Which of the following statements is not correct?

The "beauty premium" can be explained by the fact that

Which of the following statements is true of wages,educational attainment,and gender?

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"