Question 1

From 1980 to 2009, 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 2009. 
C) increased modestly from 0.7 in 1980 to about 0.8 in 2009. 
D) increased substantially from under 0.5 in 1980 to almost 1.0 in 2009. 
E) increased substantially from 0.4 in 1980 to over 0.8 in 2009. 
A) held constant at about 0.7. 
B) fell steadily from about 1.0 in 1980 to 0.5 in 2009. 
C) increased modestly from 0.7 in 1980 to about 0.8 in 2009. 
D) increased substantially from under 0.5 in 1980 to almost 1.0 in 2009. 
E) increased substantially from 0.4 in 1980 to over 0.8 in 2009. C

Question 2

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. A

Question 3

Suppose the value of marginal product is $20 per hour regardless of race.An employer who faces an hourly wage of $14 per black worker and $17 per white worker decides to hire all white workers.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. C

Question 4

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 5

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 6

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 7

Within a household, the allocation of labor to household production depends on:

Accepted Answer

A) Relative marketplace wages. 
B) Individual preferences for household versus marketplace work. 
C) Relative ability at household production. 
D) The household utility function for marketplace versus household goods. 
E) All of the above. 
A) Relative marketplace wages. 
B) Individual preferences for household versus marketplace work. 
C) Relative ability at household production. 
D) The household utility function for marketplace versus household goods. 
E) All of the above.

Question 8

From 1980 to 2009, 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 2009. 
C) increased modestly from 0.5 in 1980 to almost 0.6 in 2009. 
D) increased substantially from 0.6 in 1980 to almost 0.8 in 2009. 
E) increased substantially from 0.4 in 1980 to over 0.7 in 2009. 
A) held constant at about 0.7. 
B) fell steadily from about 1.0 in 1980 to 0.5 in 2009. 
C) increased modestly from 0.5 in 1980 to almost 0.6 in 2009. 
D) increased substantially from 0.6 in 1980 to almost 0.8 in 2009. 
E) increased substantially from 0.4 in 1980 to over 0.7 in 2009.

Question 9

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 10

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 11

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.

Question 12

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 13

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.

Question 14

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.

Question 15

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 16

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 17

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 18

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, most of this difference is attributable to differences in

Accepted Answer

A) education levels. 
B) returns to skill. 
C) height. 
D) labor market experience. 
E) productivity. 
A) education levels. 
B) returns to skill. 
C) height. 
D) labor market experience. 
E) productivity.

Question 19

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 20

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.

From 1980 to 2009, the black-white wage ratio for males in the United States

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

Suppose the value of marginal product is $20 per hour regardless of race.An employer who faces an hourly wage of $14 per black worker and $17 per white worker decides to hire all white workers.What kind of discrimination is this?

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:

A firm that discriminates against black labor will certainly

Within a household, the allocation of labor to household production depends on:

From 1980 to 2009, the female-male wage ratio 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

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

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

Discrimination in the workforce

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

Occupational crowding refers to

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?

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?

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, most of this difference is attributable to differences in

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

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

From 1980 to 2009, the black-white wage ratio for males in the United States

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

Suppose the value of marginal product is $20 per hour regardless of race.An employer who faces an hourly wage of $14 per black worker and $17 per white worker decides to hire all white workers.What kind of discrimination is this?

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:

A firm that discriminates against black labor will certainly

Within a household, the allocation of labor to household production depends on:

From 1980 to 2009, the female-male wage ratio 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

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

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

Discrimination in the workforce

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

Occupational crowding refers to

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?

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?

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, most of this difference is attributable to differences in

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

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 .