EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
7th Edition
ISBN: 9781337509848
Author: Mankiw
Publisher: VST
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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.
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
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
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EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
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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_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_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_forward
- Which type of worker would earn the high income but has lesser marginal productivity? a.Fashion model b. CEO c. Farm owner d. Computer programmerarrow_forwardWhat 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_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
- A.The market demand for labour is the sum of all the individual firms’ demand curves.Identify four factors that can cause the market demand curve to shift.B.Why are labour markets imperfect? Give five reasons.arrow_forwardThink 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_forwardGive two examples of events that could shift thedemand for labor, and explain why they do soarrow_forward
- Suppose 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_forwardExplain the dual labor market?arrow_forwardAssume the labor market for loggers is perfectly competitive. How would each of the following events influence the wage rate loggers are paid? a. Consumers boycott products made with wood. b. Loggers form a union that requires longer apprenticeships, charges high fees, and uses other devices designed to reduce union membership.arrow_forward
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