Question

The gender wage gap in the United States:

Group of answer choices

proves the existence of discrimination.

may be partially due to factors other than wage discrimination.

proves that men on average invest more in human capital than do women.

indicates that men are on average smarter than women are.

Scenario 18-7
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 18-7. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium quantity.

Scenario 27
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 27. As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium wages.

Other things being equal, what happens to labor supply in the pear-picking market when the wage paid to apple pickers decreases?

Group of answer choices

The labor supply will stay unchanged until the wages paid to pear pickers change.

The labor supply will decrease.

The labor supply will increase.

The labor supply may fall or rise, depending on the price of pears.

Scenario 22
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $11 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour.

Refer to Scenario 22. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?

Group of answer choices

$13

between $11 and $13

$11

less than $11

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 30 hours per week. For this price range, her labor supply curve is

Group of answer choices

vertical.

horizontal.

upward sloping.

backward sloping.

Which of the following could increase the supply of labor in the market for cranberry pickers?

(i)	a change in the preferences of women toward full-time work
(ii)	an increase in the output price
(iii)	an increase in the wages paid to apple pickers
(iv)	a decrease in the wages paid to apple pickers

Group of answer choices

(ii) only

(i), (ii), and (iv) only

(i) and (iv) only

(ii) and (iii) only

Answer 1

Q. The gender wage gap in the United States:

Answer: may be partially due to factors other than wage discrimination

While discrimination could be one of the factors, studies have also suggested other factors like work experience, training etc.

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Scenario 18-7
Event 1 may cause more people to enter graduate school and become professors. Event 2 may cause less people to enter the college system itself.

The magnitude of Event 2 is larger, because a large number of people enter college, but very few become professors.

Thus, the demand for professors will fall by a greater amount, than the supply of professors will rise.

Answer: As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will decrease.

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Scenario 27

Answer: As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will decrease.

While the supply of professors may rise, the demand is going to fall by a greater amount.

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Q. Other things being equal, what happens to labor supply in the pear-picking market when the wage paid to apple pickers decreases?

Answer: The labor supply will increase.

Workers from the apple market will shift to the pear market, hence increasing the supply of labor.

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Scenario 22
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $11 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?

Answer: $11

This is because he could have spent that one hour working at the resort, where he earns $11 an hour.

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Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 30 hours per week. For this price range, her labor supply curve is

Answer: upward sloping.

Due to the rise in wages, she has decided to supply more labor. Hence, the labor supply curve is upward sloping.

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Which of the following could increase the supply of labor in the market for cranberry pickers?

(i)	a change in the preferences of women toward full-time work
(ii)	an increase in the output price
(iii)	an increase in the wages paid to apple pickers
(iv)	a decrease in the wages paid to apple pickers

Answer: (i), (ii), and (iv) only

If more workers work full-time, the labor supply increases.

If output prices rise, sellers will hire more laborers.

If apple pickers are paid less, they will shift to the cranberry market as workers.