Question 1

Which of the following causes a difference in wages but does not necessarily qualify as discrimination?

Accepted Answer

A) Differences in schooling. 
B) Differences in skills. 
C) Differences in experience. 
D) Differences in language. 
E) All of the above lead to differences in wages but none of them necessarily qualifies as discrimination. 
A) Differences in schooling. 
B) Differences in skills. 
C) Differences in experience. 
D) Differences in language. 
E) All of the above lead to differences in wages but none of them necessarily qualifies as discrimination. E

Question 2

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, e.g., 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, e.g., 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. B

Question 3

Discrimination in the workforce

Accepted Answer

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

Question 4

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 5

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 6

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 7

The female-male wage gap in the United States is associated with women earning between 25 and 30 percent less than men. By all accounts, much of this difference is attributable to

Accepted Answer

A) differences in education levels. 
B) differences in the returns to skill. 
C) gender discrimination. 
D) differences in labor market experience. 
E) differences in productivity. 
A) differences in education levels. 
B) differences in the returns to skill. 
C) gender discrimination. 
D) differences in labor market experience. 
E) differences in productivity.

Question 8

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) Labor market discrimination. 
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) Labor market discrimination. 
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.

Question 9

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 10

Owners of men's clothing stores traditionally discriminate against males when making hiring decisions because they believe that male customers are more eager to buy clothing from female associates. In reality, however, one's sex does not affect one's sales (i.e., one's sex does not affect one's productivity). Discrimination of this sort throughout the labor market has resulted in clothing stores paying male associates lower wages than they pay female associates. A new men's clothing store enters the industry without these prejudicial beliefs. Which of the following outcomes is not likely to come about?

Accepted Answer

A) The new store will hire more male associates than the typical existing store. 
B) The new store will make greater profit than it would if it would hold similarly biased views. 
C) The new store will have lower per-employee labor costs than existing stores. 
D) The new store will likely have lower prices than existing stores. 
E) The new store will have to hire female associates to compete with its competition. 
A) The new store will hire more male associates than the typical existing store. 
B) The new store will make greater profit than it would if it would hold similarly biased views. 
C) The new store will have lower per-employee labor costs than existing stores. 
D) The new store will likely have lower prices than existing stores. 
E) The new store will have to hire female associates to compete with its competition.

Question 11

There is a restaurant that employs only males to serve guests, only females to tend the bar, and a mix of male and female cooks and dishwashers. The dishwashers and cooks never come in contact with the customers. This hiring pattern is most indicative of

Accepted Answer

A) employer discrimination. 
B) employee discrimination. 
C) consumer discrimination. 
D) statistical discrimination. 
E) racial discrimination. 
A) employer discrimination. 
B) employee discrimination. 
C) consumer discrimination. 
D) statistical discrimination. 
E) racial discrimination.

Question 12

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

Accepted Answer

A) Most firms are discriminatory. 
B) Workers don't 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 don't 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.

Question 13

Customer discrimination results in

Accepted Answer

A) lower wages for the discriminated-against worker group. 
B) a lower output price regardless of who the firm hires. 
C) a segregated workforce. 
D) lower firm profits. 
E) all of these are results of customer discrimination. 
A) lower wages for the discriminated-against worker group. 
B) a lower output price regardless of who the firm hires. 
C) a segregated workforce. 
D) lower firm profits. 
E) all of these are results of customer discrimination.

Question 14

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 15

The female-male wage gap in the United States

Accepted Answer

A) has been increasing over the last 30 years. 
B) has been decreasing over the past 30 years. 
C) is non-existent. 
D) has been decreasing so much that while a raw wage gap still exists it is quite small. 
E) will likely change from negative to positive over the next decade. 
A) has been increasing over the last 30 years. 
B) has been decreasing over the past 30 years. 
C) is non-existent. 
D) has been decreasing so much that while a raw wage gap still exists it is quite small. 
E) will likely change from negative to positive over the next decade.

Question 16

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

Accepted Answer

A) Because workers who have the worst wage options are those most likely to leave the labor force. 
B) Because educated workers are those most likely to leave the labor force. 
C) Because the most experienced workers are those most likely to leave the labor force. 
D) Because wages don't take into account salaried workers. 
E) Because the U.S. has a negatively skewed wage distribution. 
A) Because workers who have the worst wage options are those most likely to leave the labor force. 
B) Because educated workers are those most likely to leave the labor force. 
C) Because the most experienced workers are those most likely to leave the labor force. 
D) Because wages don't take into account salaried workers. 
E) Because the U.S. has a negatively skewed wage distribution.

Question 17

Consider a color-blind firm that is currently maximizing profits. An affirmative action policy is put in place requiring that all firms in the industry abide by a certain quota. Which of the following will occur?

Accepted Answer

A) There will be no effect because the firm is currently color-blind. 
B) If the quota is already met, the firm will make no changes in its hiring practices. 
C) If the firm currently meets the required quota, it will cut costs by adjusting labor to exactly meet the affirmative action requirements. 
D) If the firm currently meets the quota, it will begin to lose profits due to the affirmative action requirements. 
E) The firm will have to fire some workers. 
A) There will be no effect because the firm is currently color-blind. 
B) If the quota is already met, the firm will make no changes in its hiring practices. 
C) If the firm currently meets the required quota, it will cut costs by adjusting labor to exactly meet the affirmative action requirements. 
D) If the firm currently meets the quota, it will begin to lose profits due to the affirmative action requirements. 
E) The firm will have to fire some workers.

Question 18

Consider the following data for men and women:   If a regression estimates the return to experience for men, βM, to be 0.25, how much of the average difference in wages can be attributed to differences in work experience and how much can be attributed to discrimination and/or unobservable characteristics?

Accepted Answer

A) $0.00 to differences in work experience; $2.50 to discrimination/unobservable characteristics. 
B) $1.20 to differences in work experience; $1.30 to discrimination/unobservable characteristics. 
C) $1.30 to differences in work experience; $1.20 to discrimination/unobservable characteristics. 
D) $1.50 to differences in work experience; $1.00 to discrimination/unobservable characteristics. 
E) $2.50 to differences in work experience; $0.00 to discrimination/unobservable characteristics. 
A) $0.00 to differences in work experience; $2.50 to discrimination/unobservable characteristics. 
B) $1.20 to differences in work experience; $1.30 to discrimination/unobservable characteristics. 
C) $1.30 to differences in work experience; $1.20 to discrimination/unobservable characteristics. 
D) $1.50 to differences in work experience; $1.00 to discrimination/unobservable characteristics. 
E) $2.50 to differences in work experience; $0.00 to discrimination/unobservable characteristics.

Question 19

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 20

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 whites. 
B) All firms will earn the same amount of profit regardless of their discriminatory preferences. 
C) Any employer with a discrimination coefficient greater than 0.6 will hire only white workers. 
D) Any employer with a discrimination coefficient greater than 1.6 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 whites. 
B) All firms will earn the same amount of profit regardless of their discriminatory preferences. 
C) Any employer with a discrimination coefficient greater than 0.6 will hire only white workers. 
D) Any employer with a discrimination coefficient greater than 1.6 will hire only black workers. 
E) Any employer with a positive discrimination coefficient will hire only white workers.

Which of the following causes a difference in wages but does not necessarily qualify as discrimination?

In a discrimination model, nepotism is best described as

Discrimination in the workforce

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

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

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

The female-male wage gap in the United States is associated with women earning between 25 and 30 percent less than men. By all accounts, much of this difference is attributable to

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?

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

There is a restaurant that employs only males to serve guests, only females to tend the bar, and a mix of male and female cooks and dishwashers. The dishwashers and cooks never come in contact with the customers. This hiring pattern is most indicative of

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

Customer discrimination results in

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

The female-male wage gap in the United States

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

Consider a color-blind firm that is currently maximizing profits. An affirmative action policy is put in place requiring that all firms in the industry abide by a certain quota. Which of the following will occur?

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

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?

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

Which of the following causes a difference in wages but does not necessarily qualify as discrimination?

In a discrimination model, nepotism is best described as

Discrimination in the workforce

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

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

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

The female-male wage gap in the United States is associated with women earning between 25 and 30 percent less than men. By all accounts, much of this difference is attributable to

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?

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

There is a restaurant that employs only males to serve guests, only females to tend the bar, and a mix of male and female cooks and dishwashers. The dishwashers and cooks never come in contact with the customers. This hiring pattern is most indicative of

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

Customer discrimination results in

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

The female-male wage gap in the United States

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

Consider a color-blind firm that is currently maximizing profits. An affirmative action policy is put in place requiring that all firms in the industry abide by a certain quota. Which of the following will occur?

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

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?

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 .