Around the World Activity

Chapter 11 The Labor Market—Around the World

Read the following articles and pages in order to answer the below questions.

"U.S. Women Soccer Players Charge Pay Discrimination", CNN Money
"Microsoft to Trim Bonus for Bay Area Workers", SF Gate

Question

1. According to the CNN article “U.S. Women Soccer Players Charge Pay Discrimination,” how is men’s and women’s pay determined?

equal between men and women

based on the revenue they produce

the 2015 FIFA Men’s World Cup final

the 2015 NCAA Men’s Soccer final

Question

2. In the article “U.S. Women Woccer Players Charge Pay Discrimination,” what percentage less do women soccer players earn than men?

15%

28%–62%

95%

0%; there is equality in pay

Question

3. In the article “Microsoft to Trim Bonus for Bay Area Workers,” what was initially the reasoning behind Microsoft’s pay differential between California Bay Area workers and base pay?

During the Dot Com boom, the Bay Area employees were more skilled.

During the Dot Com boom, other Bay Area tech firms were paying large salaries.

Bay Area employers were hard to come by.

During the Dot Com boom, minimum wage in the Bay Area forced Microsoft to pay a higher wage there.

Question

4. Up until the upcoming pay cut, what is the differential in starting pay received by Bay Area Microsoft employees relative to the company’s base pay?

15%

25%

75%

Question

5. Which statement might BEST summarize the pay differential scenarios described in the above articles?

Those with more experience are paid more than those with lower levels of experience.

Those with higher levels of education are paid more than those with lower levels of education.

Those with a higher opportunity cost of labor are paid more than those with a lower opportunity cost of labor, and employees’ pay reflects the demand for their services.

Higher risk jobs are compensated more relative to similar but lower risk jobs.