1. Which of the following is the BEST explanation of why some sports players earn astronomical wages?Select one:

a.Their ability to attract a large audience

b.Their physical abilities

c.The theory of labor markets cannot explain why some workers earn disproportionate wages

d.The prestige of athletes, which appears to be higher than that of other occupations, such as teachers.

2. The theory of compensating wage differentials predicts that workers in "dangerous jobs" should be paid more than workers in "safe jobs," everything else equal. However, if we look at data, we find that workers in risky jobs (farm workers, construction workers, etc.) actually earn less than workers in safe jobs (professionals, service providers, etc.) who work in more desirable work environment. What is the most likely explanation among the following? Select one:

a.highly paid and poorly paid workers are in noncompeting groups

b.the differential required to compensate for high skill exceeds the differential required for poor working conditions

c.employers have imperfect information and don't select jobs wisely

d.firms with desirable working conditions are not hiring low skill labor

1. Which of the following is an example of a compensating wage differential?Select one:

a.Workers in a dynamite mine receive higher wages than if they worked in other jobs that require the same level of skills.

b.Nurse anesthetists are paid less than anesthesiologists (who have medical degrees).

c.In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs.

d.Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.

1. Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?Select one:

a.because it takes far more skill and training to be a major league baseball player than to be a neurosurgeon

b.because the supply of talented major league baseball players is low relative to its demand compared to the supply of neurosurgeons. Therefore, adding another player yields far greater marginal benefit than adding another neurosurgeon.

c.because the supply of talented major league baseball players is relatively low compared to the supply of neurosurgeons. Therefore, major league baseball players exert far more market power than neurosurgeon.

d.because the total value of baseball games is much higher than the total value of neurosurgery

1. According to the study by Blau and Khan, in 2010 women earned ___ % less than men because of discrimination, all other factors held the same. Note: This question is asking for gender wage differential attributed to discrimination, not for total gender wage differential.Select one:

a.91.6%

b.38%

c.8.4%

d.20.7%

1. The estimated "unexplained" gender differential may underestimate the effect of discrimination because. Select one:

a.women are more educated than men on average.

b.men may be more highly qualified with respect to the factors that are omitted from the analysis (such as college major, work effort, willingness to compete).

c.lower qualifications of women may themselves be a direct result of labor market discrimination.

d.men are more educated than women on average.

1. Which of the following is FALSE given recent empirical findings?Select one:

a.Gay men earn less than unmarried heterosexual men, while lesbians earn more than heterosexual women.

b.To some extent, gender pay difference reflects personal choices, including the greater propensity of women to work shorter hours, part-time, or to take some time out after childbirth.

c.Business occupations and law pay higher rewards for working longer hours, while technology and science jobs do not.

d.Most occupations have no wage penalties for takingtime out from work of shorter than a year duration.

1. If the minimum wage is set at $15, then a worker who works 40 hours a week for 50 weeks a year would earn

a.$30,000

b.$20,000

c.$25,000

d.$15,000

e.$35,000

9.All of the following factors responsible for the decline in the unexplained wage gap between males and females over time,exceptSelect one:

a.a shift inlabor market demandfavoring women

b.the rise of single-family home ownership

c.declines in discrimination

d.improved women's labor market skills

10.Marginal product is Select one:

a.an accounting calculation used by companies to determine salaries

b.the effort workers put into production of goods and services

c.a low quality good or service

d.the increase in output of a firm that results from the hiring of an additional worker, all other factors remaining constant.

11.Becker's model of taste-used employer discrimination assumes all of the following,exceptSelect one:

a.Men and women are equally productive.

b.Nondiscriminatory employers hire only women.

c.Lower female wage compensates the employer for the disutility of hiring a woman.

d.Thediscrimination coefficient d=0 for anon-discriminating employer.

12. Becker's model of taste-based discrimination predicts all of the following,exceptSelect one:

a.If nondiscriminatory employers can hire all women who are seeking employment, there will be no discriminatory pay differential, even though some employers have tastes for discrimination.

b.Competition among employers can eliminate the wage gap.

c.If employer tastes for discrimination vary across occupations, occupational segregation by sex can occur.

d.It is more profitable for the firm to discriminate against men than against women.

13. Statistical discrimination occurs whenSelect one:

a.co-workers or customers experience disutility from collaborating with a person from a different demographic group

b.an employer wants to be compensated for hiring a person who belongs to a different demographic group

c.an employer uses a statistical program to select job candidates

d.an employer judges the individual's productivity based on average characteristics of the group to which he/she belongsrather than based on his/her own merits

14. Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?

Select one:

a.Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.

b.Employers who discriminate pay an economic penalty.

c.Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences.

d.Ultimately, employers who discriminate cannot remain profitable.

15. The overcrowding model shows that gender segregation in employment may cause a wage differential between otherwise equally productive male and female workers. This differential will occur ifSelect one:

a.the entry of women into traditionally male jobs is seen by male incumbents as reducing the prestige of the occupation.

b.workers incur high "search costs" when looking for a job.

c.one firm gains monopsony power and becomes a large buyer of labor relative to the size of a particular market.

d.the supply of women seeking employment is large relative to the demand for labor in 'female' jobs.

16. Here is how antidiscrimination policies that successfully increase the access of women to predominatelymaleoccupations could affect wages in predominatelyfemaleoccupations:Select one:

a.Some men leave the F sector (and so demand for F jobs declines) and enter the M sector (and so demand for M jobs increases); wages in M jobs rise while wages in F jobs decline.

b.Some women leave the F sector (and so supply to F jobs declines) and enter the M sector (and so supply to M jobs increases); wages in F jobs rise while wages in M jobs decline.

c.Some men leave the M sector (and so supply to M jobs declines) and enter the F sector (and so supply to F jobs increases); wages in M jobs rise while wages in F jobs decline.

d.Some women leave the M sector (and so supply to M jobs declines) and enter the F sector (and so supply to F jobs increases); wages in F jobs decline while wages in M jobs rise.

17. Which of the following is FALSE? Affirmative action programsSelect one:

a.are required for government contractors in the form ofestablishing employment goals and timetables for meeting them

b.are never adopted voluntarily by companies

c.may be imposed by the courts in cases where employers are involved indiscrimination suits

d.are used by colleges in admission policies

18. Which one is FALSE regarding Title VII of the Civil Rights Act of1964?Select one:

a.Title VII does not deal with sexual harassment,Title IX does.

b.Under Title VII,sex cannot be used in combination with some other factor as a legal basis for differentiating between women and men ("sex-plus discrimination.") For example, an employer cannot refuse to hire women with young children while men with young children are hired.

c.Cases of unintentional discrimination fall under Title VII. These are neutral practices with regard to hiring or promotion that result in adisparate impact, that is have disproportionately adverse effects on women or minorities.

d.Title VII prohibits discrimination in employment on the basis ofsex, sexual orientation, race, religion, and national origin.

19. The primary purpose of labor unions is toSelect one:

a.endorse candidates and donate money to them.

b.ensure that workers receive adequate safety training.

c.negotiate with employers about wages and working conditions.

d.ensure that all members earn identical incomes.