Question 1

If workers in nuclear power plants underestimate the true risk of their jobs,

Accepted Answer

If workers underestimate the risk of their jobs, it means they may not require higher wages to assume the risk, and thus the wages paid will not be high enough to compensate them fully for the risk they are taking. This is consistent with the theory of compensating wage differentials, which states that workers may be willing to accept lower wages if the job is less risky. When workers do not perceive the true risks, they will not demand higher wages to compensate for the risks, leading to wages that are too low.

Question 2

Since Poland joined the European Union in 2004,many young and educated Poles have emigrated to the United Kingdom.As a result,the labor supply curve in the United Kingdom shifts to the right and the equilibrium wage rises.

Accepted Answer

The answer of Since Poland joined the European Union in...

Question 3

A study by Price Fishback and Shawn Kantor of the University of Arizona shows that after the passage of workers' compensation laws,wages received by workers in the coal and lumber industries fell. Source: Price V.Fishback and Shawn Everett Kantor,"Did Workers Pay for the Passage of Workers' Compensation Laws?" Quarterly Journal of Economics,Vol.100,No.3,August 1995,pp.713-742.
Which of the following could explain why passage of workers' compensation laws led to a fall in wages in some industries?

Accepted Answer

Option B suggests that the passage of workers' compensation laws allowed employers to reduce compensating differentials, which are the extra wages paid to workers for working in a hazardous or risky job. As a result, employers were able to reduce wages after the passage of these laws. Options A, C, and D do not provide a plausible explanation for why wages would fall after the passage of workers' compensation laws.

Question 4

If the labor supply curve shifts to the left and the labor demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Accepted Answer

The answer of If the labor supply curve shifts to...

Question 5

According to the signaling hypothesis,

Accepted Answer

The signaling hypothesis suggests that education serves as a signal to employers, indicating that an individual possesses certain desirable characteristics such as intelligence, work ethic, and discipline. This signal helps to differentiate between potential employees and assists employers in making hiring decisions. Options A, C, and D do not accurately reflect the signaling hypothesis.

Question 6

Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?

Accepted Answer

The answer of Which of the following explains why talented...

Question 7

Some superstar athletes in the sports industry earn very high levels of income relative to other occupations,and over time the wage differential has been increasing.What could have caused this?

Accepted Answer

Technological advances such as cable television have increased the demand for sports entertainment, leading to higher revenues for sports organizations, which in turn allows them to offer higher salaries to superstar athletes. This has led to an increase in the wage differential between superstar athletes and other occupations.

Question 8

There are 345 Division 1-A college basketball programs.As the value of a Division 1-A basketball team increases,the equilibrium wage (salary)paid to head coaches ________ and the equilibrium quantity of head coaching positions ________.

Accepted Answer

The answer of There are 345 Division 1-A college basketball...

Question 9

The signaling hypothesis of education states that education is a costly activity that enhances a worker's productivity.

Accepted Answer

The answer of The signaling hypothesis of education states that...

Question 10

Wage differentials between occupations can be explained by all of the following except

Accepted Answer

While the other options can contribute to wage differentials, the market power of employers is not a significant factor as wages are primarily dictated by supply and demand in the labor market.

Question 11

Consider the following statements about the signaling hypothesis of education:
 a.The signaling hypothesis of education is based on the idea that college graduates are more productive than non-college graduates.
b.The signaling hypothesis of education suggests that firms rely on human capital requirements to ensure worker quality.
c.Employers rely on certain signals,such as a college diploma,to gauge a potential employee's abilities because it could lower the cost of acquiring information about the person that is not easily observed.
Which of the statements above is true about the signaling hypothesis of education?

Accepted Answer

The answer of Consider the following statements about the signaling...

Question 12

Painters who paint water towers earn higher wages relative to painters who paint houses because

Accepted Answer

The answer of Painters who paint water towers earn higher...

Question 13

The success of Walt Disney's animated film The Lion King in 1994,increased production of animated films,increasing the demand for animators much faster than the supply of animators was increasing.As a result,in the market for animators,the equilibrium wage fell and the equilibrium quantity increased.

Accepted Answer

The statement is false. When the demand for animators increased, the equilibrium wage for animators would increase due to the increase in demand. The equilibrium quantity of animators would also increase, but the wage rate would not fall.

Question 14

If the labor demand curve shifts to the right and the labor supply curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Accepted Answer

The answer of If the labor demand curve shifts to...

Question 15

Compensating differentials are

Accepted Answer

Compensating differentials are higher wages that compensate workers for the unpleasant aspects of a job, such as dangerous or unpleasant working conditions. Choice A refers to fringe benefits, not compensating differentials. Choice B refers to a situation where the supply of labor is greater than the demand, which would result in lower wages, not compensating differentials. Choice D refers to wage differentials based on experience, which are not necessarily compensating for unpleasant aspects of a job.

Question 16

Consider the market for blackjack dealers in Las Vegas.In each of the following cases,explain what happens to the equilibrium wage rate and the quantity of blackjack dealers hired.
a.Three new large resort casinos open in Las Vegas.
b.Fewer students are attending classes to learn to become blackjack dealers.
c.Traditionally,blackjack dealing is a field that attracts foreign workers.However,changes in immigration laws have made it more difficult for foreign workers to come to Las Vegas to obtain jobs.The demand for blackjack dealers,however,does not change.
d.Advances in technology have increased the popularity of electronic blackjack machines and decreased the popularity of live table games which require the use of a dealer.

Accepted Answer

The answer of Consider the market for blackjack dealers in...

Question 17

If national laws protecting the health and safety of workers completely eliminate any and all risk,then

Accepted Answer

If national laws completely eliminate any and all risk for workers in risky occupations, compensating wage differentials would disappear because the workers would no longer be taking on any extra risk. This means that workers in risky occupations may not be any better off than workers in less risky occupations who are earning the same wage.

Question 18

There are 345 Division 1-A college basketball programs.Based on this information,the labor supply curve for Division 1-A head basketball coaches is

Accepted Answer

The answer of There are 345 Division 1-A college basketball...

Question 19

Which of the following is an example of a compensating wage differential?

Accepted Answer

Compensating wage differentials occur when workers are paid higher or lower wages due to the inherent risks or unpleasantness of the job. The workers in a dynamite mine would likely face greater risks and potentially unpleasant working conditions, thus warranting a higher wage to compensate for those factors. The other answer choices do not fit the definition of a compensating wage differential.

Question 20

What is the signaling hypothesis of education?

Accepted Answer

The answer of What is the signaling hypothesis of education?...

Quiz 17: The Markets for Labor and Other Factors of Production

If workers in nuclear power plants underestimate the true risk of their jobs,

Since Poland joined the European Union in 2004,many young and educated Poles have emigrated to the United Kingdom.As a result,the labor supply curve in the United Kingdom shifts to the right and the equilibrium wage rises.

If the labor supply curve shifts to the left and the labor demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

According to the signaling hypothesis,

Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?

Some superstar athletes in the sports industry earn very high levels of income relative to other occupations,and over time the wage differential has been increasing.What could have caused this?

There are 345 Division 1-A college basketball programs.As the value of a Division 1-A basketball team increases,the equilibrium wage (salary) paid to head coaches and the equilibrium quantity of head coaching positions .

The signaling hypothesis of education states that education is a costly activity that enhances a worker's productivity.

Wage differentials between occupations can be explained by all of the following except

Painters who paint water towers earn higher wages relative to painters who paint houses because

If the labor demand curve shifts to the right and the labor supply curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Compensating differentials are

If national laws protecting the health and safety of workers completely eliminate any and all risk,then

There are 345 Division 1-A college basketball programs.Based on this information,the labor supply curve for Division 1-A head basketball coaches is

Which of the following is an example of a compensating wage differential?

What is the signaling hypothesis of education?

Quiz 17: The Markets for Labor and Other Factors of Production

If workers in nuclear power plants underestimate the true risk of their jobs,

Since Poland joined the European Union in 2004,many young and educated Poles have emigrated to the United Kingdom.As a result,the labor supply curve in the United Kingdom shifts to the right and the equilibrium wage rises.

If the labor supply curve shifts to the left and the labor demand curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

According to the signaling hypothesis,

Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?

Some superstar athletes in the sports industry earn very high levels of income relative to other occupations,and over time the wage differential has been increasing.What could have caused this?

There are 345 Division 1-A college basketball programs.As the value of a Division 1-A basketball team increases,the equilibrium wage (salary) paid to head coaches ________ and the equilibrium quantity of head coaching positions ________.

The signaling hypothesis of education states that education is a costly activity that enhances a worker's productivity.

Wage differentials between occupations can be explained by all of the following except

Painters who paint water towers earn higher wages relative to painters who paint houses because

If the labor demand curve shifts to the right and the labor supply curve remains unchanged,what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.

Compensating differentials are

If national laws protecting the health and safety of workers completely eliminate any and all risk,then

There are 345 Division 1-A college basketball programs.Based on this information,the labor supply curve for Division 1-A head basketball coaches is

Which of the following is an example of a compensating wage differential?

What is the signaling hypothesis of education?

There are 345 Division 1-A college basketball programs.As the value of a Division 1-A basketball team increases,the equilibrium wage (salary) paid to head coaches and the equilibrium quantity of head coaching positions .