Question 1

A firm that discriminates against black labor will certainly

Accepted Answer

A) hire all white workers. 
B) hire all black workers. 
C) hire no workers. 
D) hire a mix of black and white workers. 
E) earn less profit than it could earn if it did not discriminate. 
A) hire all white workers. 
B) hire all black workers. 
C) hire no workers. 
D) hire a mix of black and white workers. 
E) earn less profit than it could earn if it did not discriminate.

Question 2

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 the 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 3

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 4

Compared to hiring a white worker, an 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 5

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?

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 6

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.

Question 7

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:

Accepted Answer

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

Question 8

If one looks at U.S. Census data and finds that the average male salary is $43,000 while the average female salary is $38,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

Accepted Answer

A) Women are more inclined than men to work part-time. 
B) Women have less education than men. 
C) Women and men prefer different kinds of jobs. 
D) Labor market discrimination. 
E) On-the-job experience. 
A) Women are more inclined than men to work part-time. 
B) Women have less education than men. 
C) Women and men prefer different kinds of jobs. 
D) Labor market discrimination. 
E) On-the-job experience.

Question 9

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 the above. 
A) Employee discrimination. 
B) Consumer discrimination. 
C) Employer discrimination. 
D) Statistical discrimination. 
E) None of the above.

Question 10

Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why?

Accepted Answer

A) Customers will refuse to purchase from a discriminating employer. 
B) Workers will refuse to work for a discriminating employer. 
C) The government mandates that the employer not act on his or her desire to discriminate. 
D) Discrimination imposes an additional cost on the employer; and high-cost firms are eventually driven out of a competitive output market. 
E) A competitive output market requires all workers to be paid the same wage. 
A) Customers will refuse to purchase from a discriminating employer. 
B) Workers will refuse to work for a discriminating employer. 
C) The government mandates that the employer not act on his or her desire to discriminate. 
D) Discrimination imposes an additional cost on the employer; and high-cost firms are eventually driven out of a competitive output market. 
E) A competitive output market requires all workers to be paid the same wage.

A firm that discriminates against black labor will certainly

Occupational crowding refers to

Compared to hiring a white worker, an 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?

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

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:

If one looks at U.S. Census data and finds that the average male salary is $43,000 while the average female salary is $38,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why?

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

A firm that discriminates against black labor will certainly

Occupational crowding refers to

Compared to hiring a white worker, an 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?

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

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:

If one looks at U.S. Census data and finds that the average male salary is $43,000 while the average female salary is $38,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why?

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