Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 19, Problem 4CQQ
To determine
Example of signaling.
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Marshall and Lily work at a local department store.Marshall, who greets customers as they arrive, ispaid less than Lily, who cleans the bathrooms. Thisis an example ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wages.
Esmeralda is content in her current job. She doesn’t look for a better job even though she could earn more. This is an example of the
A business consulting firm hires Robin because shewas a math major in college. Her new job does notrequire any of the mathematics she learned, but thefirm believes that anyone who can graduate with amath degree must be very smart. This is an example ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wages
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- Your enterprising uncle opens a sandwich shop that employs 7 people. The employees are paid $6 per hour, and a sandwich sells for $3. If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired? What is that worker's marginal product?arrow_forwardTed leaves his job as a high school math teacher andreturns to school to study the latest developmentsin computer programming, after which he takesa higher-paying job at a software firm. This is anexample ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wagesarrow_forward20. Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore. As a result, we'd expect a difference in wages between the two jobs. The difference is known as a. an efficiency wage. b. a compensating differential. c. a wage adjustment. d. a minimum wage.arrow_forward
- What reason does NOT explain why women may earn less than men in the labor market? A. Occupational choice B. Women tend to be less productive C. Women tend to ask for raises less often D. Having childrenarrow_forwardThere are many reasons why women earn less than men. One is attributed to the education and work environment women seek. Women often look for jobs that have normal hours, good working conditions, and safety. True or False?arrow_forwardLorna’s Lumberyard is a monopsony. Lorna estimates that at a wage of $10, 100 workers would be willing to work for her. Similarly, at a wage of $12, 200 workers would be willing to work. Her marginal factor cost is: a. $10. b. $14. c. $120. d. $140. e. $240.arrow_forward
- Think of a job that either you or a friend/relative held that paid a wage that you thought was either unfair or inequitable compared to the wages or salaries of other positions within the business or within the wider business community. Answer the following questions in relation to that example. On what basis do you think the wage was set? I.e. What factors influenced how much the organization valued the role? Why did you think it was unfair? If there was an opportunity to be covered by a Union contract/agreement, do you think there would have been an increase/decrease in the wage? If you were the employer, what would cause you to increase the wage for that role? and finally, 5. Do you think that the wages/salaries of the main "jobs" in our society are allocated fairly? Provide an example of a role that you think is highly undervalued and explain why. For example, should CEOs and celebrities earn millions of dollars each year compared to child care workers or stay at home parents who…arrow_forwardSuppose Kara maximizes her profits by hiring workers to produce hand-made soaps. Her soaps sell for $1 each. How should Kara decide on how many workers she should hire? a.Hire workers up to the point when the price of her soaps starts to fall from $1 b.Hire workers up to the point when the total product of all her workers is at its maximum c.Hire up to the point when the wage rate equals to the value of the marginal product of the last worker hired d.Hire up to the point when the marginal product of the last worker hired is equal to zeroarrow_forwardWhich of the following statements proves the existence of wage discrimination? a. Male prison guards earn more on average than female prison guards. b. Professor of economics earn more on average than professors of gender studies. c. Men earn more on average than women. d. All of the above prove the existence of wage discrimination. e. None of the above prove the existence of wage discrimination.arrow_forward
- Which of the following statements is correct? a. The Mariel Boatlift study finds that the mass emigration of Cubans lowered the wage of unskilled native workers but not college-educated workers. b. Immigration from the former Soviet Union increased Israeli's population by 15% between 1950 and 1951 and the wages of high-skill natives. c. The May 1968 civil unrest in France lowered the education attainment of affected student cohorts but did not affect their future earnings. d. In a simple signaling model of education, human capital increases as a result of education. e. The repatriates from Algeria to France, due to Algeria's independence from France, increased France's labor force by 2%, but Hunt (1992) finds no significant impact on the French labor markets. Solve with in one hour for upvotearrow_forwardGive two examples of events that could shift thedemand for labor, and explain why they do soarrow_forwardOn average, men earn more than women. Identify the statements that could reasonably explain the disparity. a. On average, men spend more time at work than women. b. Women are more likely to leave the workforce at some point, resulting in different levels of human capital across genders. c. Men are more likely to choose higher-paying occupations. d. Men have bigger brains and are therefore more intelligent. e. Employers discriminate against women.arrow_forward
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