Question :
30) Competitive markets tend to eliminate economic discrimination, but there : 1387993
30) Competitive markets tend to eliminate economic discrimination, but there are many historical examples of firms that hired few, or no, black or female workers. Which of the following is not a reason for the persistence of this form of discrimination?
A) In many cases, white workers refused to work with black workers.
B) Some white consumers were unwilling to buy from companies that employed black workers.
C) If discrimination makes it difficult for a member of a group to be hired in a particular occupation, there is less incentive for members of the group to be trained to enter that occupation.
D) Laws passed by the federal government made it more expensive to hire black or female workers. As a result, it was less expensive for employers to hire mostly white male workers.
31) Paying a person a lower wage or excluding a person from an occupation on the basis of an irrelevant characteristic such as race or gender
A) is economic discrimination.
B) violates federal comparable worth laws.
C) can be explained by negative feedback loops.
D) creates differences in wages that economists call “compensating differentials.”
32) Larry and Mike are equally skilled construction workers employed by the Brown and Root Company. Larry’s job is riskier because he typically works on a scaffold 1,000 feet above ground. Larry’s higher wage rate is the result of
A) economic discrimination.
B) a compensating differential.
C) a negative feedback loop.
D) a higher marginal revenue product.
33) Wage differences can be explained by all of the following except
A) compensating differentials.
B) differences in marginal revenue products.
C) economic discrimination.
D) comparable worth.
34) According to two economists, George Ackerlof and William Dickens, how can cognitive dissonance affect workers’ perceptions of their jobs?
A) Cognitive dissonance makes workers believe that measures to improve their health and safety in the workplace are ineffective.
B) Cognitive dissonance causes workers to perceive they are victims of discrimination when, in fact, they are not.
C) Cognitive dissonance might cause workers to underestimate the true risks of their jobs.
D) Cognitive dissonance causes a worker to believe his marginal revenue product is greater than it really is.
35) One implication of compensating differentials is that laws passed to protect the health and safety of workers may not make workers better off than they were prior to the passages of the laws. Why is this so?
A) Workers may suffer from cognitive dissonance, which means that the perception workers have that their jobs are hazardous is not true.
B) If the laws make the work environment safer, there is no reason to pay workers a compensating differential for the risk associated with their jobs.
C) The principal-agent problem that exists in the workplace may cause workers to shirk more after the work environment becomes safer.
D) In non-competitive markets, workers are unlikely to receive a compensating differential to compensate for jobs with extra risk. As a result, after the laws are passed their wages will not change.
36) Phil Harrison is a welder who works on skyscrapers and extension bridges. Phil’s brother William is also a welder but he works in a manufacturing plant where he does all of his welding on ground level. Which of the following would not explain why Phil earns a higher wage than his brother?
A) cognitive dissonance
B) Phil has greater experience as a welder than his brother has.
C) Phil’s marginal revenue product is greater than William’s marginal revenue product.
D) Phil’s job is more hazardous than William’s job.
37) Marsha Murphy complained, “Many jobs that are filled mostly by men offer higher wages than most jobs that are typically filled by women. In many cases, the jobs men have require the same education and skills as the jobs women have. This is clearly unfair. Women should be paid the same wages as men are paid for jobs that are equivalent in terms of their qualifications.” Which of the following statements describes Marsha’s position?
A) Marsha believes that women’s wages should include a compensating differential.
B) Marsha believes employers assume that men and women have different job preferences.
C) Marsha believes that employers are reluctant to hire women for certain jobs because of cognitive dissonance.
D) Marsha endorses a concept called comparable worth.
38) Assume that a comparable worth law is passed that determines that kindergarten teachers and bricklayers have comparable jobs; therefore, workers in both of these occupations should be paid the same wages. Assume that prior to the law, bricklayers were paid a higher wage than kindergarten teachers. Which of the following is the most likely result of the comparable worth law?
A) The equilibrium wage will be the same for kindergarten teachers and bricklayers.
B) Some former bricklayers will become kindergarten teachers and some former kindergarten teachers will become bricklayers.
C) There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers.
D) There will be surplus in the market for bricklayers and a shortage in the market for kindergarten teachers.
39) Many economists are critical of proposals to pass comparable worth legislation. Which of the following is the best explanation for this criticism?
A) Comparable worth legislation will only lead to efficient market outcomes if women in low-paying jobs suffer from cognitive dissonance.
B) Proposals for comparable worth legislation assume that wages for low-paying women’s jobs should include compensating differentials. Economists believe that compensating differentials should be part of the wages for all jobs held by women.
C) Proposals for comparable worth legislation call for increases in the wages of jobs held predominantly by women. Economists believe that this legislation should be used to increase the wages of all workers.
D) Many economists believe that allowing markets to determine wages, rather than the rules required by comparable worth legislation, results in more efficient outcomes.
