Question 1

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Accepted Answer

The answer of Which term do economists use to refer...

Question 2

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Accepted Answer

Arnold experiences the largest nonmonetary reward because his job aligns with his personal preference to work at night and sleep during the day, providing him with satisfaction beyond monetary compensation.

Question 3

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage.Which of the following would push the night watchman's wage higher?

Accepted Answer

The answer of The job of night watchman at the...

Question 4

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair.She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home.The higher wage offered by the funeral home is an example of

Accepted Answer

The higher wage offered by the funeral home is a compensating differential because Callie is being compensated for working in an environment that may be less desirable or less enjoyable than the hair salon. The work at a funeral home may be more emotionally taxing or have different demands than the work at the hair salon. By offering a higher wage, the funeral home is compensating Callie for these differences in working conditions.

Question 5

On average,truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads.The difference in pay can be attributed to

Accepted Answer

The difference in pay can be attributed to a compensating differential, which is additional compensation paid to workers for working under dangerous or undesirable conditions.

Question 6

Which of the following comparisons best illustrates a compensating differential?

Accepted Answer

Compensating differentials occur when workers are willing to accept a lower wage in exchange for a better working condition or additional benefits. In this case, Karl's higher wage compensates him for the potential health risks associated with his job. The other options do not illustrate compensating differentials - A represents wage differences due to differences in productivity, and B represents wage differences due to differences in personality traits.

Question 7

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Accepted Answer

Coal mining jobs are often more dangerous than other jobs with similar education requirements, which can lead to higher wages for coal miners. This is because there is a greater risk of injury or death in coal mining, and the wages reflect that risk. Additionally, the decline of the coal industry and rising coal imports may actually decrease wages for coal miners. The statement does not mention unionization, so choice C cannot be considered as the best option.

Question 8

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Accepted Answer

The answer of Park rangers at Yellowstone National Park are...

Question 9

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Accepted Answer

People generally prefer easy, fun, and safe jobs over difficult, dull, and dangerous ones, leading to a higher supply of labor for the former when wages are equal.

Question 10

Cory has just graduated from veterinary school.He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher.The higher salary to work with larger animals is an example of

Accepted Answer

The higher salary for working with farm animals and horses reflects a compensating differential, where individuals are willing to accept a higher wage in exchange for taking on higher risks or less desirable working conditions.

Question 11

Jobs that involve pleasant work,as opposed to jobs that involve unpleasant work,usually pay

Accepted Answer

Jobs that involve unpleasant work, such as sanitation or janitorial work, often have a higher turnover rate and therefore need to offer higher wages as an incentive for workers to stay in those positions. Jobs that involve pleasant work, such as art or writing, often have a high demand for positions and may not need to offer as high of wages.

Question 12

Traci and Ken both work at the local factory producing tractors.Traci earns $20 per hour working the day shift,and Ken earns $22 per hour working the night shift.Traci and Ken do the same job,have the same experience,and have the same level of education.This means that the

Accepted Answer

The fact that Ken earns $2 more per hour than Traci suggests that there is a compensating wage differential for working the night shift, which is likely less desirable than the day shift. This does not necessarily mean that the higher-paying job is intrinsically more attractive or that discrimination is taking place.

Question 13

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.Which of the following would push the divers' wages higher?

Accepted Answer

The job being dangerous would generally lead to higher wages due to the risk involved.

Question 14

On average,electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines.The difference in pay is attributed to

Accepted Answer

The difference in pay between electricians who work on dangerous high-voltage power lines and those who don't is attributed to a compensating differential. This is because the former group is exposed to greater risk and danger, and therefore requires higher compensation to compensate for that risk. The other options (A, B, C) are not applicable in this scenario.

Question 15

Which of the following is an example of a compensating differential?

Accepted Answer

Compensating differentials are wage differences that reflect the differences in non-wage characteristics of a job, such as the working conditions, safety or discomfort, job security, or flexibility. In option B, the two workers have different job conditions, which can include factors like exposure to hazardous materials, physical demands, or work schedule flexibility. Hence, an employer may need to offer a higher wage to attract workers to jobs with less desirable working conditions.

Question 16

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Accepted Answer

Plumbers who work with sewer lines are likely to be perceived as having a "dirty" job, which can lead to a shortage of workers willing to do the job. This can push up wages for plumbers who are willing to work on cleaning plugged sewer lines.

Question 17

Which of the following is an example of a compensating differential?

Accepted Answer

A compensating differential is a difference in wage that compensates workers for the non-monetary attributes of different jobs. In this case, the two workers who have jobs with different working conditions are being compensated differently for the non-monetary attribute of working conditions. The other options do not involve compensating differentials - A and B involve differences in human capital or skill level, and D involves discrimination.

Question 18

If a worker is indifferent between a job with a wage of $12 per hour and a job with a wage of $15 per hour,then the

Accepted Answer

The compensating wage differential is the difference in wages that makes a worker indifferent between two jobs, accounting for non-wage job characteristics. Here, it's $3 per hour.

Question 19

Other things equal,a particular job will likely pay a higher wage if it involves

Accepted Answer

Jobs that involve danger to the worker require specialized skills and training which are rare and in high demand. This scarcity of labor in such jobs results in a higher wage. Personal enjoyment and intellectual stimulation may motivate workers, but they do not necessarily lead to higher wages.

Question 20

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?

Accepted Answer

The answer of Public school teachers are known to have...

Quiz 19: Earnings and Discrimination.

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage.Which of the following would push the night watchman's wage higher?

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair.She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home.The higher wage offered by the funeral home is an example of

On average,truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads.The difference in pay can be attributed to

Which of the following comparisons best illustrates a compensating differential?

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Cory has just graduated from veterinary school.He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher.The higher salary to work with larger animals is an example of

Jobs that involve pleasant work,as opposed to jobs that involve unpleasant work,usually pay

Traci and Ken both work at the local factory producing tractors.Traci earns $20 per hour working the day shift,and Ken earns $22 per hour working the night shift.Traci and Ken do the same job,have the same experience,and have the same level of education.This means that the

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.Which of the following would push the divers' wages higher?

On average,electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines.The difference in pay is attributed to

Which of the following is an example of a compensating differential?

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Which of the following is an example of a compensating differential?

If a worker is indifferent between a job with a wage of $12 per hour and a job with a wage of $15 per hour,then the

Other things equal,a particular job will likely pay a higher wage if it involves

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?