Home > Microeconomics > Think About Earnings and Discrimination

Think About Earnings and Discrimination

I recommend students take the time to write thoughtful answers to these questions in their class notebooks:

  1. Why do coal miners get paid more than other workers with similar education?
  2. In what sense is education a type of capital?
  3. How might education raise a worker’s wage without raising the worker’s productivity?
  4. What conditions lead to economic superstars? Would you expect to see superstars in dentistry? In music?
  5. Give three reasons a worker’s wage might be above the level that balances supply and demand.
  6. What difficulties arise in deciding whether a group of workers has a lower wage because of discrimination?
  7. Does the profit motive tend to make the practice of discrimination based on race more common or less common? How?
  8. Give an example of how discrimination might persist in a competitive market.
Categories: Microeconomics
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