Men and women tend to choose different types of occupations, and so a. a source
ID: 1146779 • Letter: M
Question
Men and women tend to choose different types of occupations, and so
a.
a source of wage differences between men and women is differences in human capital.
b.
a source of wage differences between men and women is compensating differentials.
c.
the gap between the earnings of men and the earnings of women is likely even more significant than the data alone indicate.
d.
we should expect the earnings of women to rise relative to the earnings of men, in order to induce women to accept jobs that they have been reluctant to accept in the past.
White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-marketby discrimination against women should consider whether white men and women have similar
(i)
years of work experience.
(ii)
educational attainments.
(iii)
occupations.
(iv)
child care responsibilities.
a.
(i) and (ii) only
b.
(iii) and (iv) only
c.
(ii) only
d.
(i), (ii), (iii), and (iv)
Which of the following statements is correct?
a.
The market for capital is unlike the market for labor because the rental price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
b.
The market for capital is unlike the market for labor because the purchase price of capital is unaffected by the marginal product of capital, whereas the price of labor is affected by the marginal product of labor.
c.
The market for capital is like the market for labor because the rental price of capital is affected by the marginal product of capital, and the price of labor is affected by the marginal product of labor.
d.
Both a and b are correct.
quickly without explanation.
Explanation / Answer
1. If woomen chooses jobs which are less riskier than jobs in which men are interested then because of the risk that is associated iwth the jobs that men do, men get more wages. This wage differential i s known as compensating factor.
SUch as an HR of a subsidiary would get mmore pay in war conflict country than an HR in a stable country.
Hence option b is correct.
2. Wage differences without discrimination, which is genuine, occur because of compensating factor (that is discussed above), educational differnences ( more qualified gets more wage), experienc at work ( higher the experience higher t he wage) and dependants (somewhere wage also gets depends upon the child crae repsosibilitis). If a man and women having no differnces in al the factors written, even one is getting paid lesser than other then it is discrimination.
Hence all factprs hsould be considered. thus option d is correct.
3. option c is correct.