Question 1

Increased discrimination results in ________ of the workers discriminated against being hired and being paid ________ wage rates.

Accepted Answer

When discrimination increases, fewer workers who are discriminated against will be hired, and even if they are hired, they are more likely to be paid lower wage rates because of their discrimination. Therefore, the answer is (D) fewer; lower.

Question 2

If buyers discriminate against women and minorities,
i.the value of marginal product of women and minorities is less than otherwise.
ii.the wage rate paid to women and minorities is less than otherwise.
iii.more women and minorities are hired than otherwise.

Accepted Answer

If buyers discriminate against women and minorities, it does not necessarily affect the value of their marginal product but does likely result in them being paid less. There's no reason to believe more women and minorities would be hired than otherwise; discrimination typically reduces employment opportunities for these groups.

Question 3

Pete just started a new job as an assembler and is earning a wage of $10 per hour.Sam,who is an experienced assembler assigned to train Pete,earns $15 per hour.The opportunity cost to Pete of acquiring this skill is

Accepted Answer

The opportunity cost to Pete of acquiring this skill is the difference between what he earns ($10 per hour) and what he could potentially earn if he had the skill ($15 per hour), which is $5 per hour.

Question 4

High-skilled workers earn more than low-skilled workers in part because the high-skilled workers have

Accepted Answer

High-skilled workers are able to produce more output per unit of input, resulting in a higher value of marginal product. This increased productivity translates to higher wages, as firms are willing to pay more for workers who can produce more valuable output.

Question 5

The more costly it is to acquire a skill,the

Accepted Answer

The more costly it is to acquire a skill, the fewer people will be able to acquire it, resulting in a smaller pool of high-skilled workers. This scarcity of high-skilled workers, in turn, drives up the wage differential between high-skilled and low-skilled workers. Therefore, option C is the most appropriate choice.

Question 6

The ________ the value of marginal product of skill,the ________.

Accepted Answer

The value of marginal product of skill refers to the additional output that a worker can produce by using one additional unit of skill. If this value is larger, it means that high-skilled workers are more productive and can generate more revenue for their employers. As a result, the wage differential between low-skilled and high-skilled workers is also larger to reflect this difference in productivity. This is consistent with the empirical evidence that shows that the wage gap between low- and high-skilled workers has been growing over time.

Question 7

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

Accepted Answer

The position of the supply curve for high-skilled workers is influenced by the cost of acquiring the skill, as higher costs can limit the number of individuals who can afford to gain the necessary skills, thus affecting the supply.

Question 8

The demand curve for high-skilled workers lies ________ the demand curve for low-skilled workers and the supply curve of high-skilled workers lies ________ the supply curve of low-skilled workers.

Accepted Answer

The demand curve for high-skilled workers lies above the demand curve for low-skilled workers because high-skilled workers are generally more productive and thus more valuable to employers. The supply curve for high-skilled workers also lies above the supply curve for low-skilled workers because there are typically fewer high-skilled workers available, making them more scarce and valuable.

Question 9

Compared to low-skilled workers,high-skilled workers have a ________ value of marginal product and ________ opportunity cost of obtaining their skills.

Accepted Answer

High-skilled workers have a higher value of marginal product because they are able to produce more output with their specialized skills, which increases their demand in the labor market. At the same time, they have a higher opportunity cost of obtaining their skills because it often requires more years of education and training, which comes with a higher financial cost and the potential loss of income from not working during that time.

Question 10

Looking at wage differentials between white men and other groups in the United States,we see that

Accepted Answer

Studies have consistently shown that black men, on average, earn less than white men and also earn less than white women. Women of all races also earn less than men in general. Therefore, option C is the best choice. Options A, B, D, and E are incorrect.

Question 11

The larger the value of marginal product of a skill,the

Accepted Answer

The marginal product of a skill measures the additional output produced by an additional unit of that skill. As the marginal product of a skill increases, the demand for that skill will increase. This will cause the demand curve for high-skilled workers to shift to the right, increasing the wage rate at which the demand curve for high-skilled workers crosses the demand curve for low-skilled workers. This will create a larger vertical difference between the demand curves for high- and low-skilled labor. Therefore, choice A is the best answer.

Question 12

How does the supply curve of high-skilled workers compare to the supply curve of low-skilled workers?

Accepted Answer

The supply curve of high-skilled workers is less elastic and steeper than that of low-skilled workers because high-skilled workers invest more time and money in education and training to acquire their skills. Therefore, at any given wage rate, the quantity supplied of high-skilled workers is less than that of low-skilled workers.

Question 13

High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is ________ that for low-skilled workers and the supply is ________ that for low-skilled workers.

Accepted Answer

The statement "the demand for high-skilled workers is greater than that for low-skilled workers" explains why high-skilled workers earn more. Additionally, the statement "the supply is lower than that for low-skilled workers" suggests that there are fewer high-skilled workers available, further increasing their value and earning potential.

Question 14

The rates of return on high school and college educations have

Accepted Answer

According to multiple studies and analyses, the rates of return on high school and college educations have been estimated at between 5 to 10 percent per year. This means that investing in education is still a wise financial decision for most individuals.

Question 15

The higher the cost of acquiring skills,the ________ are the high-skilled and low-skilled labor ________ curves.

Accepted Answer

The higher the cost of acquiring skills, the fewer individuals will invest in acquiring high-level skills, leading to a decrease in the supply of high-skilled labor. This makes the supply curves for high-skilled and low-skilled labor farther apart, as the supply of high-skilled labor decreases relative to low-skilled labor.

Question 16

What economic effect works to eliminate sex and race discrimination?

Accepted Answer

The answer of What economic effect works to eliminate sex...

Question 17

Looking at wage differentials between white women and white men in the United States since 2000,we see that the amount of the difference

Accepted Answer

Wage differentials between white women and white men in the United States have decreased since 2000. According to data from the Bureau of Labor Statistics, in 2000, women earned approximately 76 cents for every dollar earned by men. By 2019, that number had increased to 81 cents for every dollar. This represents a decrease in the wage gap.

Question 18

Which of the following is correct? On the average,
i.the wage differential between white males and white females has narrowed since 2000.
ii.black females are paid more than black males.
iii.Hispanic males are paid more than black males.

Accepted Answer

The statement i is correct, as the wage differential between white males and white females has indeed narrowed since 2000. However, statements ii and iii are incorrect. On average, black females are paid less than black males and Hispanic males are paid less than white males.

Question 19

Discrimination by customers creates a wage differential between two groups by creating a difference in the two groups'

Accepted Answer

Discrimination by customers can skew the demand curve for labor for one group compared to another, leading to a difference in the two groups' value of marginal product. This can result in the group facing discrimination earning lower wages than the group that does not face discrimination.

Question 20

The ________ distance between the supply curve of low-skilled labor and the supply curve of high-skilled labor is the ________.

Accepted Answer

The vertical distance between the supply curves of low-skilled and high-skilled labor represents the compensation for the cost of acquiring skill, as it reflects the wage differential needed to incentivize workers to acquire additional skills.

Quiz 20: Economic Inequality

Increased discrimination results in of the workers discriminated against being hired and being paid wage rates.

If buyers discriminate against women and minorities, i.the value of marginal product of women and minorities is less than otherwise. ii.the wage rate paid to women and minorities is less than otherwise. iii.more women and minorities are hired than otherwise.

Pete just started a new job as an assembler and is earning a wage of $10 per hour.Sam,who is an experienced assembler assigned to train Pete,earns $15 per hour.The opportunity cost to Pete of acquiring this skill is

High-skilled workers earn more than low-skilled workers in part because the high-skilled workers have

The more costly it is to acquire a skill,the

The the value of marginal product of skill,the .

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

The demand curve for high-skilled workers lies the demand curve for low-skilled workers and the supply curve of high-skilled workers lies the supply curve of low-skilled workers.

Compared to low-skilled workers,high-skilled workers have a value of marginal product and opportunity cost of obtaining their skills.

Looking at wage differentials between white men and other groups in the United States,we see that

The larger the value of marginal product of a skill,the

How does the supply curve of high-skilled workers compare to the supply curve of low-skilled workers?

High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is that for low-skilled workers and the supply is that for low-skilled workers.

The rates of return on high school and college educations have

The higher the cost of acquiring skills,the are the high-skilled and low-skilled labor curves.

What economic effect works to eliminate sex and race discrimination?

Looking at wage differentials between white women and white men in the United States since 2000,we see that the amount of the difference

Which of the following is correct? On the average, i.the wage differential between white males and white females has narrowed since 2000. ii.black females are paid more than black males. iii.Hispanic males are paid more than black males.

Discrimination by customers creates a wage differential between two groups by creating a difference in the two groups'

The distance between the supply curve of low-skilled labor and the supply curve of high-skilled labor is the .