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1、Chapter 19Earnings and DiscriminationTRUE/FALSE1.A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Compensating differentialsMSC:Definitional2.A compensating differential is a difference in wage
2、s due to higher levels of education or other forms of human capital.ANS:FDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Compensating differentialsMSC:Definitional3.The fact that doctors are paid more than economics professors is an example of a compensating differential.ANS:TDIF:1REF:19-1NAT:Analytic
3、LOC:Labor marketsTOP:Compensating differentialsMSC:Definitional4.A computer is an example of productivity-enhancing human capital.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capitalMSC:Definitional5.Higher levels of human capital are correlated with higher earnings because firms are wil
4、ling to pay more for better-educated workers who have higher marginal productivities.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capitalMSC:Interpretive6.As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been
5、declining.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive7.The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.ANS:FDIF:2REF:19-1NAT
6、:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive8.One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.ANS:TDIF:2REF:19-1NAT:
7、AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive9.The statement that the rich get richer, and the poor get poorer is supported by evidence of an expanding wage gap between high-skill and low-skill workers.ANS:TDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of s
8、killsMSC:Interpretive10.Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers in the United States.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive11.It is increasingly clear that techno
9、logical change, rather than international trade, has been largely responsible for an expanding wage gap between high-skill and low-skill workers.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive12.The United States is losing manufacturing jobs to countries
10、 like China and India, where manufacturing jobs have increased 30 percent since 1995.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative13.Since 1995, global manufacturing employment has declined, yet global industrial output has risen.ANS:TDIF:2REF:19-1NAT:A
11、nalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative14.One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative15.The demand for wo
12、rkers with excellent problem-solving skills is increasing, as are the wages for those workers.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative16.One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a wo
13、rkers productivity for certain jobs, especially for those workers who deal with the public.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Beauty premiumMSC:Interpretive17.One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligenc
14、e.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Beauty premiumMSC:Interpretive18.The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential to employers.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Signali
15、ngMSC:Definitional19.The signaling theory of education maintains that workers who complete specific levels of education enhance their productivity through education.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:SignalingMSC:Definitional20.If the signaling theory of education is correct, then ed
16、ucation is correlated with higher earnings because people with higher levels of education are more productive.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:SignalingMSC:Interpretive21.The human-capital theory of education maintains that workers who complete specific levels of education enhance
17、their productivity through education.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capital | SignalingMSC:Definitional22.Education and on-the-job training are sources of human capital.ANS:TDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capitalMSC:Applicative23.The superstar phenomeno
18、n explains why professional athletes earn more than amateur athletes.ANS:FDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Superstar phenomenonMSC:Definitional24.Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labo
19、r marketsTOP:SuperstarsMSC:Interpretive25.An effective minimum wage law will increase the quantity of labor demanded.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Above-equilibrium wagesMSC:Applicative26.Labor unions will raise the quantity of labor demanded.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:La
20、bor marketsTOP:UnionsMSC:Applicative27.Efficiency wages will raise the quantity of labor supplied to the market.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Efficiency wagesMSC:Applicative28.Efficiency wages decrease employee effort.ANS:FDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Above-equi
21、librium wagesMSC:Interpretive29.Efficiency wages decrease employee turnover.ANS:TDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Above-equilibrium wagesMSC:Interpretive30.Economic theory of labor markets suggests that wages are governed by labor supply and labor demand.ANS:TDIF:1REF:19-1NAT:AnalyticLO
22、C:Labor marketsTOP:WagesMSC:Applicative31.Empirical evidence suggests that ability, effort, and chance are not likely to be significant contributors to wage differences.ANS:FDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:WagesMSC:Interpretive32.Discrimination is a reflection of some peoples prejudice
23、 against certain groups in society.ANS:TDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Definitional33.Differences in human capital among groups of workers is possibly a reflection of past discrimination.ANS:TDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretiv
24、e34.Discrimination is an emotionally charged issue that is impossible to study objectively.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive35.When differences in human capital among workers lead to discrimination, the differences are typically a result of social or p
25、olitical processes rather than economic processes.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive36.When comparing average wages for black and white workers in the United States, wages paid to black workers have been about 20 percent less than those paid to white wo
26、rkers.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Applicative37.When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less than those paid to male workers.ANS:FDIF:2REF:19-2NAT:AnalyticLOC
27、:Labor marketsTOP:Labor-market discriminationMSC:Applicative38.Politicians often point to average wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because they dont trust any of the statistics quoted by
28、 the politicians.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive39.Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because peop
29、le differ in the kinds of work they are willing and able to do.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive40.Economists would argue that the gender wage gap is narrowing because of efficiency wages.ANS:FDIF:2REF:19-2 | 19-1NAT:AnalyticLOC:Labor mark
30、etsTOP:Labor-market discrimination | Efficiency wagesMSC:Interpretive41.All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpr
31、etive42.In a labor market free from discrimination, wages for workers that are employed by the same company will still differ.ANS:TDIF:2REF:19-2 | 19-1NAT:AnalyticLOC:Labor marketsTOP:Labor-market discrimination | Human capitalMSC:Interpretive43.Evidence of discrimination is most apparent when one c
32、ompares wages among broad groups.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive44.When discrimination occurs as a result of prejudice, firms do not maximize profits.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Inter
33、pretive45.Consumers are often a primary source of discrimination in labor markets.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive46.Discrimination is usually not a profit-maximizing strategy.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Discriminat
34、ionMSC:Interpretive47.One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive48.If peop
35、le with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive49.Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consu
36、mers exercise a preference for discrimination in product markets or governments mandate discrimination.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive50.Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.AN
37、S:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive51.Experimental evidence indicates women choose less competitive environments than men.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Gender differencesMSC:InterpretiveSHORT ANSWER1.After graduating from college, you
38、receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesnt provide the highest level of monetary compensation? Use the concept of compensating differentials to explain your answer.ANS:Compensa
39、ting differentials refer to differences in job characteristics across different occupations. But compensating differentials can also lead to differences in job characteristics within an occupation. Such considerations may include geographic location and quality-of-life issues associated with a parti
40、cular job offer. Thus, it is not irrational to consider nonmonetary compensation.DIF:2REF:19-1NAT:ReflectiveLOC:Labor marketsTOP:Compensating differentialsMSC:Analytical2.The National Collegiate Athletic Association (NCAA) has long argued that nationally-prominent college athletes are compensated wi
41、th an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets.ANS:Many economists would argue that the NCAA is the most exploitative organization
42、 in the United States, considering the value that star student athletes contribute to a university. Most would argue that the education that star student athletes receive is of less value than what the athletes contribute.DIF:2REF:19-1NAT:ReflectiveLOC:Labor marketsTOP:Human capitalMSC:Analytical3.A
43、 recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences f
44、or clerical staff.ANS:Other factors may include gender, job tenure, and job responsibilities, ability and effort.DIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:WagesMSC:Analytical4.Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an
45、investment in human capital?ANS:The theory of signaling suggests that those who have desirable productivity characteristics are more likely to finish educational programs. The human capital theory suggests that productivity characteristics are enhanced by the learning that takes place in formal educational programs.DIF:2REF:19-1NAT:ReflectiveLOC:Labor marketsTOP:Human capital | SignalingMSC:Definitional5.List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a
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