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

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

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 4TY

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Ted 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 wages
What is a good example of the effect of human capital on income? O A Workers who learn to make high demand products are well-paid O B. Only job applicants with high school diplomas get interviews O C. Employees who learn to perform high risk jobs always get paid more O D. People with college degrees usually earn more than those with less education
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.
Paying soldiers more who are in combat zones is an example of? O wage discrimination O compensating differentials O human capital effect O segmented market effect.
You just got a job in Washington, D.C. You move into an apartment with some acquaintances. All your roommates, however, are slackers and do not clean up afterthemselves.You,ontheotherhand,cancleanfaster than each of them. You determine that you are 70% faster at dishes and 10% faster with vacuuming. All of these tasks have to be done daily. Which jobs should you assign to your roommates to get the most free time overall? Assume you have the same number of hours to devote to cleaning. Now, since you are faster, you seem to get done quicker than your roommate. What sorts of problems may this create? Can you imagine a traderelated analogy to this problem?
Determine whether each of thefollowing would increase or decrease the opportunity costs formothers who choose not to work outside the home. Explain youranswers.a. Higher levels of education for womenb. Higher unemployment rates for womenc. Higher average pay levels for womend. Lower demand for labor in industries that traditionally employlarge numbers of women
The figure shows the cost of college for high- and low-productivity workers. Based on the college wage premium: Income 400 (thousands of dollars a year) 300- 200 100 Cost low productivity Cost high productivity College 4-year wage premium Years of college O a. neither type of worker will get a four-year degree. O b. high-productivity workers will get a four-year degree. O c. all workers will get a four-year degree. O d. high-productivity workers will choose six years of college.
A current debate in education is whether teachersshould be paid on a standard pay scale based solelyupon their years of training and teaching experience,or whether part of their salary should be based upontheir performance (called “merit pay”).a. Why might merit pay be desirable?b. Who might be opposed to a system of merit pay?c. What is a potential challenge of merit pay?d. A related issue: Why might a school district decideto pay teachers significantly more than the salariesoffered by surrounding districts?
Pls select the correct option and explain it in 6-7 sentences ok. Using natural experiments to evaluate the causal effect of immigration on local labor markets is challenging because: a. Native-born residents of a city may be more likely to out-migrate in response to a large amount of in-migration. b. An increase in the number of immigrants to a city from one country may discourage immigration to that city from other places. c. Local businesses may move to a city with a lot of new immigrants. d. All of the above are correct. e. None of the above are correct.
Your enterprising uncle opens a sandwich shopthat employs 7 people. The employees are paid$12 per hour, and a sandwich sells for $6. If youruncle is maximizing his profit, what is the value ofthe marginal product of the last worker he hired?What is that worker’s marginal product?
Leadbelly Co. sells pencils in a perfectly competitiveproduct market and hires workers in a perfectly compel·ilive labor market. Assume tha t the market wage ra le forworkers is $150 per day.a. What rule should Leadbcily follow to hire theprofit-maximizing ammmt ol labor?b. Al the profit-maximizing level of output, the marginal product of the last worker hirro is 30 boxesof pencils per day. Calculate the price of a box ofpencils.c. Draw a diagram of the labor market fo r pencil wo.rkers (as in Figure 4 ol this chapter) next to a diagramof the labor supply and demand for Leadbelly Co. (asin Figure 3). Label the equilibrium wage and quanti tyof labor lor both the market and the lirm. How arethese d iagrams related?d. Suppose some pencil workers switch to jobs in thegrowing computer industry. On the sidc,-by-5idediagrams from part (c), show how this changeaffects the equilibrium wage and quantity o( laborlor both the pencil market and lor Leadbelly. Howdocs this change affect the marginal…
A Moving to another question will save this response. tion 12 An example of compensating differential is workers in a dynamite mine earning higher than similarly skilled workers in another industry. O a. b. graduates from more reputed colleges earning a higher starting salary than graduates from less known schools. nurse anesthetists being paid less than anesthesiologists (who have a medical degree). C. Od among Hollywood stars, George Clooney making more money than William Fichtner Od. Moving to another question will save this response. F11 F12 F9 F10