Question 1

What is the main theoretical implication regarding the standard employer-based discrimination model?

Accepted Answer

A)  Most firms are discriminatory. 
B)  Workers do not care if firms are discriminatory. 
C)  Discrimination is not profitable. 
D)  Discrimination can only occur if there are exactly two types of labor (e.g., white and black). 
E)  Discrimination can only occur in competitive labor markets. 
A)  Most firms are discriminatory. 
B)  Workers do not care if firms are discriminatory. 
C)  Discrimination is not profitable. 
D)  Discrimination can only occur if there are exactly two types of labor (e.g., white and black). 
E)  Discrimination can only occur in competitive labor markets. C

Question 2

If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average black salary is $36,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

Accepted Answer

A)  Whites are more inclined than blacks to work part-time. 
B)  Blacks have less education than whites. 
C)  Discrimination exists in the labor market. 
D)  Whites are more likely than blacks to hold positions in upper management. 
E)  Whites are more likely than blacks to own their own business. 
A)  Whites are more inclined than blacks to work part-time. 
B)  Blacks have less education than whites. 
C)  Discrimination exists in the labor market. 
D)  Whites are more likely than blacks to hold positions in upper management. 
E)  Whites are more likely than blacks to own their own business. A

Question 3

Which one of the following statements concerning employee discrimination is not true?

Accepted Answer

A)  Employers have no reason to employ a segregated workforce if there is employee discrimination. 
B)  Employee discrimination does not affect the profitability of firms as long as firms can employ segregated work forces. 
C)  Discriminating employees act as if their wage is less than it actually is if they are employed by a firm that has an integrated workforce. 
D)  Workers accept the utility-maximizing job offer even when there is employee discrimination. 
E)  Employee discrimination will not produce a wage differential between equally skilled black and white workers. 
A)  Employers have no reason to employ a segregated workforce if there is employee discrimination. 
B)  Employee discrimination does not affect the profitability of firms as long as firms can employ segregated work forces. 
C)  Discriminating employees act as if their wage is less than it actually is if they are employed by a firm that has an integrated workforce. 
D)  Workers accept the utility-maximizing job offer even when there is employee discrimination. 
E)  Employee discrimination will not produce a wage differential between equally skilled black and white workers. A

Question 4

The perceived cost of hiring a black worker for an employer who is prejudiced against blacks will exceed

Accepted Answer

A)  the cost of hiring whites. 
B)  the wage of whites. 
C)  the wage of blacks. 
D)  the white-black wage gap. 
E)  total profit. 
A)  the cost of hiring whites. 
B)  the wage of whites. 
C)  the wage of blacks. 
D)  the white-black wage gap. 
E)  total profit.

Question 5

Which of the following statements regarding gender differences in international labor markets is true?

Accepted Answer

A)  The difference in male and female wages in the United States is less than in almost any other developed country. 
B)  The difference in male and female wages in the United States is about the average of other developed countries. 
C)  Men and women are typically employed at the same rate in developed countries. 
D)  There is a sizeable wage gap between men and women in most developed countries. 
E)  There is no discernable wage gap between men and women in most developed countries. 
A)  The difference in male and female wages in the United States is less than in almost any other developed country. 
B)  The difference in male and female wages in the United States is about the average of other developed countries. 
C)  Men and women are typically employed at the same rate in developed countries. 
D)  There is a sizeable wage gap between men and women in most developed countries. 
E)  There is no discernable wage gap between men and women in most developed countries.

Question 6

The Human Resources department at a firm has two job candidates for one position. Both candidates went to the same college, took the same classes, and have the same academic record. They both performed well in the interview and said that they see the job as a long-term position. One applicant is male; the other is female. Historically within the firm, women quit their jobs at higher rates than do men. Because of this, the firm fills the position with the male candidate. What kind of discrimination is this?

Accepted Answer

A)  employee discrimination 
B)  consumer discrimination 
C)  employer discrimination 
D)  statistical discrimination 
E)  None of these is examples of discrimination. 
A)  employee discrimination 
B)  consumer discrimination 
C)  employer discrimination 
D)  statistical discrimination 
E)  None of these is examples of discrimination.

Question 7

In the standard Becker model of discrimination, each firm is associated with a discrimination coefficient of d > 0 and acts as if the wage paid to blacks is wB(1 + d) where wB is the actual hourly wage paid to blacks. Assume whites and blacks are equally productive. The going wage for whites is $16 per hour while the going wage for blacks is $10 per hour. Which of the following will characterize the labor market equilibrium when some employers have discriminatory preferences against hiring black workers?

Accepted Answer

A)  All discriminating employers will hire only white workers. 
B)  All firms will earn the same amount of profit regardless of their discriminatory preferences. 
C)  An employer with a discrimination coefficient of 0.8 will hire only white workers. 
D)  An employer with a discrimination coefficient of 2.2 will hire only black workers. 
E)  Any employer with a positive discrimination coefficient will hire only white workers. 
A)  All discriminating employers will hire only white workers. 
B)  All firms will earn the same amount of profit regardless of their discriminatory preferences. 
C)  An employer with a discrimination coefficient of 0.8 will hire only white workers. 
D)  An employer with a discrimination coefficient of 2.2 will hire only black workers. 
E)  Any employer with a positive discrimination coefficient will hire only white workers.

Question 8

From 1980 to 2012, the black-white wage ratio for males in the United States

Accepted Answer

A)  held constant at about 0.7. 
B)  fell steadily from about 1.0 in 1980 to 0.5 in 2012. 
C)  increased modestly from 0.7 in 1980 to about 0.8 in 2012. 
D)  increased substantially from under 0.5 in 1980 to almost 1.0 in 2012. 
E)  increased substantially from 0.4 in 1980 to over 0.8 in 2012. 
A)  held constant at about 0.7. 
B)  fell steadily from about 1.0 in 1980 to 0.5 in 2012. 
C)  increased modestly from 0.7 in 1980 to about 0.8 in 2012. 
D)  increased substantially from under 0.5 in 1980 to almost 1.0 in 2012. 
E)  increased substantially from 0.4 in 1980 to over 0.8 in 2012.

Question 9

One possible measure of gender discrimination is to look at the difference between the average male wage and the average female wage. This is a poor measure of discrimination for all of the following reasons except that men and women

Accepted Answer

A)  might have different preferences when it comes to supplying labor. 
B)  may differ in the return they receive for their skills. 
C)  may differ in their overall level of skill. 
D)  may differ in their taste for part-time jobs. 
E)  may differ in their willingness to accept risky jobs. 
A)  might have different preferences when it comes to supplying labor. 
B)  may differ in the return they receive for their skills. 
C)  may differ in their overall level of skill. 
D)  may differ in their taste for part-time jobs. 
E)  may differ in their willingness to accept risky jobs.

Question 10

Over the last 30 years in the United States, the black-white earnings ratio for women has ________ and for men has ________.

Accepted Answer

A)  been relatively flat; steadily increased 
B)  been relatively flat; steadily decreased 
C)  steadily increased; steadily increased 
D)  steadily increased; steadily decreased 
E)  steadily increased; been relatively flat 
A)  been relatively flat; steadily increased 
B)  been relatively flat; steadily decreased 
C)  steadily increased; steadily increased 
D)  steadily increased; steadily decreased 
E)  steadily increased; been relatively flat

Question 11

There is a debate over how much of the female-male wage gap is due to differences in labor market differences. What is one reason why this is highly debated?

Accepted Answer

A)  Men and women vary greatly in their education levels. 
B)  There is little evidence that men and women have different labor market experience after conditioning on age and education. 
C)  Men and women vary greatly in their productivity. 
D)  Even if, conditioning on age, women have less labor market experience than men, this difference itself may be due to discrimination. 
E)  Men and women willingly choose to work different occupations. 
A)  Men and women vary greatly in their education levels. 
B)  There is little evidence that men and women have different labor market experience after conditioning on age and education. 
C)  Men and women vary greatly in their productivity. 
D)  Even if, conditioning on age, women have less labor market experience than men, this difference itself may be due to discrimination. 
E)  Men and women willingly choose to work different occupations.

Question 12

From 1980 to 2012, the female-male wage ratio in the United States

Accepted Answer

A)  held constant at about 0.7. 
B)  fell steadily from about 1.0 in 1980 to 0.5 in 2012. 
C)  increased modestly from 0.5 in 1980 to almost 0.6 in 2012. 
D)  increased substantially from 0.6 in 1980 to almost 0.8 in 2012. 
E)  increased substantially from 0.4 in 1980 to just under 0.7 in 2012. 
A)  held constant at about 0.7. 
B)  fell steadily from about 1.0 in 1980 to 0.5 in 2012. 
C)  increased modestly from 0.5 in 1980 to almost 0.6 in 2012. 
D)  increased substantially from 0.6 in 1980 to almost 0.8 in 2012. 
E)  increased substantially from 0.4 in 1980 to just under 0.7 in 2012.

Question 13

Compared to hiring a white worker, a discriminatory employer is $5 less happy when he hires a black worker and is $6 less happy when he hires a Hispanic worker. The firm faces hourly wage rates of $20 for whites, $16 for blacks, and $14 for Hispanics. Which of the following describes the firm's hiring decision?

Accepted Answer

A)  The firm hires all white workers. 
B)  The firm hires all black workers. 
C)  The firm hires all Hispanic workers. 
D)  The firm hires a mixture of white and black workers. 
E)  The firm hires a mixture of white and Hispanic workers. 
A)  The firm hires all white workers. 
B)  The firm hires all black workers. 
C)  The firm hires all Hispanic workers. 
D)  The firm hires a mixture of white and black workers. 
E)  The firm hires a mixture of white and Hispanic workers.

Question 14

In the standard Becker model of discrimination, each firm is associated with a discrimination coefficient of d > 0 and acts as if the wage paid to blacks is wB(1 + d) where wB is the actual hourly wage paid to blacks. In equilibrium, a threshold level of d, labeled d*, comes about that sorts firms based on hiring decisions. Which of the following is not an outcome of this model, assuming whites and blacks are equally productive?

Accepted Answer

A)  All firms with d ≠ d* will employ all blacks or all whites. 
B)  Profits fall as d increases as long as d  d* earn the same amount of profit. 
A)  All firms with d ≠ d* will employ all blacks or all whites. 
B)  Profits fall as d increases as long as d  d* earn the same amount of profit.

Question 15

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

Accepted Answer

A)  Workers who have the worst wage options are those most likely to leave the labor force. 
B)  Educated workers are those most likely to leave the labor force. 
C)  The most experienced workers are those most likely to leave the labor force. 
D)  Wages do not consider salaried workers. 
E)  The United States has a negatively skewed wage distribution. 
A)  Workers who have the worst wage options are those most likely to leave the labor force. 
B)  Educated workers are those most likely to leave the labor force. 
C)  The most experienced workers are those most likely to leave the labor force. 
D)  Wages do not consider salaried workers. 
E)  The United States has a negatively skewed wage distribution.

Question 16

The empirical and theoretical results on occupational crowding in the United States suggest that

Accepted Answer

A)  occupational crowding is substantial in the United States, but this should not be thought of as a source of discrimination. 
B)  occupational crowding is substantial in the United States, and much of this should be thought of as a source of discrimination. 
C)  occupational crowding is substantial in the United States, but occupational crowding is unrelated to discrimination. 
D)  there is minimal occupational crowding in the United States, and therefore it cannot be a source of discrimination. 
E)  there is minimal occupational crowding in the United States, but this is still thought to be an important cause of racial discrimination but not gender discrimination. 
A)  occupational crowding is substantial in the United States, but this should not be thought of as a source of discrimination. 
B)  occupational crowding is substantial in the United States, and much of this should be thought of as a source of discrimination. 
C)  occupational crowding is substantial in the United States, but occupational crowding is unrelated to discrimination. 
D)  there is minimal occupational crowding in the United States, and therefore it cannot be a source of discrimination. 
E)  there is minimal occupational crowding in the United States, but this is still thought to be an important cause of racial discrimination but not gender discrimination.

Question 17

Occupational crowding refers to

Accepted Answer

A)  employee-based discrimination. 
B)  licensure requirements to enter certain occupations. 
C)  women being intentionally segregated into particular occupations. 
D)  firms receiving more applications for high-wage job openings than for low-wage job openings. 
E)  low turnover associated with high-wage occupations. 
A)  employee-based discrimination. 
B)  licensure requirements to enter certain occupations. 
C)  women being intentionally segregated into particular occupations. 
D)  firms receiving more applications for high-wage job openings than for low-wage job openings. 
E)  low turnover associated with high-wage occupations.

Question 18

A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's score on the test. The firm then pays a new worker a wage of w = 0.6T + 0.4G where G is the average test score for the worker's gender: 16 for women; 12 for men. How much more is a woman paid than a man when both scored a 10 on the test?

Accepted Answer

A)  $0.20 
B)  $0.40 
C)  $0.80 
D)  $1.60 
E)  $3.20 
A)  $0.20 
B)  $0.40 
C)  $0.80 
D)  $1.60 
E)  $3.20

Question 19

In a discrimination model, nepotism is best described as

Accepted Answer

A)  a desire to maximize profit regardless of who one hires. 
B)  a preference to hire a certain type of worker, for example, a worker of one's same race. 
C)  a preference to hire an integrated workforce. 
D)  a desire to advance social causes over maximizing profits. 
E)  hiring minority workers but then firing them quickly. 
A)  a desire to maximize profit regardless of who one hires. 
B)  a preference to hire a certain type of worker, for example, a worker of one's same race. 
C)  a preference to hire an integrated workforce. 
D)  a desire to advance social causes over maximizing profits. 
E)  hiring minority workers but then firing them quickly.

Question 20

Discrimination in the workforce

Accepted Answer

A)  leads to inefficiency. 
B)  never leads to higher utility. 
C)  does not exist. 
D)  is due primarily to employees and not employers or consumers. 
E)  is due primarily to consumers and not employers or employees. 
A)  leads to inefficiency. 
B)  never leads to higher utility. 
C)  does not exist. 
D)  is due primarily to employees and not employers or consumers. 
E)  is due primarily to consumers and not employers or employees.

What is the main theoretical implication regarding the standard employer-based discrimination model?

If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average black salary is $36,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

Which one of the following statements concerning employee discrimination is not true?

The perceived cost of hiring a black worker for an employer who is prejudiced against blacks will exceed

Which of the following statements regarding gender differences in international labor markets is true?

From 1980 to 2012, the black-white wage ratio for males in the United States

One possible measure of gender discrimination is to look at the difference between the average male wage and the average female wage. This is a poor measure of discrimination for all of the following reasons except that men and women

Over the last 30 years in the United States, the black-white earnings ratio for women has and for men has .

There is a debate over how much of the female-male wage gap is due to differences in labor market differences. What is one reason why this is highly debated?

From 1980 to 2012, the female-male wage ratio in the United States

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

The empirical and theoretical results on occupational crowding in the United States suggest that

Occupational crowding refers to

In a discrimination model, nepotism is best described as

Discrimination in the workforce

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 9: Labor Market Discrimination

What is the main theoretical implication regarding the standard employer-based discrimination model?

If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average black salary is $36,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

Which one of the following statements concerning employee discrimination is not true?

The perceived cost of hiring a black worker for an employer who is prejudiced against blacks will exceed

Which of the following statements regarding gender differences in international labor markets is true?

From 1980 to 2012, the black-white wage ratio for males in the United States

One possible measure of gender discrimination is to look at the difference between the average male wage and the average female wage. This is a poor measure of discrimination for all of the following reasons except that men and women

Over the last 30 years in the United States, the black-white earnings ratio for women has ________ and for men has ________.

There is a debate over how much of the female-male wage gap is due to differences in labor market differences. What is one reason why this is highly debated?

From 1980 to 2012, the female-male wage ratio in the United States

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

The empirical and theoretical results on occupational crowding in the United States suggest that

Occupational crowding refers to

In a discrimination model, nepotism is best described as

Discrimination in the workforce

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Unions

Incentive Pay

Unemployment

Filters

Over the last 30 years in the United States, the black-white earnings ratio for women has and for men has .