Please answer the questions with explanations. (Multiple Choice)

1. Which group of U.S. workers had the lowest median earnings in 2013?

a. White males b. females (all ethnicities) c. African-Americans (males and female) d. Hispanics e. African-American males

2. Which of the following sources of wage differences is/ are consistent with the marginal productivity theory of income distribution?

I. talent

II. compensating differentials

III. efficiency wages

a. I only b. II only c. III only d. I and II only e. I, II, and III

3.Compensating differentials mean that which of the fol- lowing leads to higher wages for some jobs?

a. danger b. discrimination c. marginal productivity d. market power e. a surplus of labor

4. Which of the following is a result in the efficiency-wage model?

a. compensating differentials b. surpluses of labor c. shortages of labor d. discrimination e. increased productivity

5.Which of the following statements regarding the marginal productivity theory of income distribution is correct?

a. Each worker should earn a wage based on his or her marginal productivity.

b. The wage rate should equal the rental rate.

c. Workers with higher marginal products always receive a higher wage than workers with lower marginal products.

d. The factor distribution of income is morally justified.

e. With well-functioning labor markets, each factor is paid the equilibrium marginal revenue product of that factor.

6.List three different economic concepts that explain wage differences when the marginal productivity theory of income distribution does not. Explain each. (Open ended)