Question : 21) The larger the value of marginal product of a : 1238961

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

A) larger the vertical difference between the demand curves for high- and low-skilled labor.

B) smaller the vertical difference between the demand curves for high- and low-skilled labor.

C) larger the vertical distance between the supply curves for high- and low-skilled labor.

D) smaller the vertical distance between the supply curves for high- and low-skilled labor.

E) higher is the wage rate at which the demand curve for high-skilled workers crosses the demand curve for low-skilled workers.

22) The more costly it is to acquire a skill, the

A) more people will go to school to learn the skill.

B) less employers are willing to pay for the skill.

C) greater the wage differential between high-skilled and low-skilled workers.

D) smaller the wage differential between high-skilled and low-skilled workers.

E) more the demand for workers with that skill exceeds the demand for workers without that skill.

23) The rates of return on high school and college educations have

A) not been estimated, but are assumed to be high.

B) been estimated as negative, but these are still good options for most.

C) been estimated at 50 percent per year.

D) been estimated at between 5 to 10 percent per year.

E) been estimated to be essentially zero.

24) Discrimination by customers creates a wage differential between two groups by creating a difference in the two groups’

A) supply of labor.

B) value of marginal product.

C) marginal cost of labor.

D) minimum wage.

E) opportunity cost of acquiring skills.

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

A) more; higher

B) more; lower

C) fewer; higher

D) fewer; lower

E) the same number; lower

26) 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.

A) i only

B) ii only

C) ii and iii

D) i and ii

E) i, ii, and iii

27) What economic effect works to eliminate sex and race discrimination?

A) Firms hire only the preferred races and sex.

B) Lower paid races and sexes give up working and drop out of the labor supply.

C) Customers who discriminate pay higher prices to buy from preferred races and sex.

D) The value of marginal product of the less preferred races and sexes eventually increases.

E) Lower paid races and sexes decrease their demand for goods and services.

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

A) white men and black men earn about the same but women of all races earn less.

B) white men earn more than black men but white women earn less than black men.

C) black men earn less than white men and less than white women.

D) white men and white women earn about the same but minorities earn less.

E) black men and men of Hispanic origin earn about the same amount and both groups of men are paid more than black women and women of Hispanic origin.

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

A) has not changed.

B) has increased.

C) has decreased.

D) at first increased but in the last decade it decreased.

E) at first decreased but in the last decade it increased.

30) 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.

A) i only

B) ii only

C) ii and iii

D) i and iii

E) i, ii, and iii