Question 1

To the extent that labor market discrimination exists in a country:
A) the country will not be allocating resources efficiently.
B) the country will be operating on its production possibilities curve.
C) the country will be operating beyond its production possibilities curve.
D) None of the above are true.

Accepted Answer

Labor market discrimination limits the pool of available workers, which can lead to firms hiring less productive or less qualified workers. This results in a misallocation of resources and a less efficient economy.

Question 2

Which of the following statements is true?
A) Federal legislation encourages gender-based discrimination.
B) Affirmative action programs are designed to prevent minority groups from exploiting race-based opportunities.
C) Wage gaps between women, on the one hand, and white males, on the other hand, have fallen since the 1970s.
D) Wage gaps between males and females have widened since 1970.

Accepted Answer

The statement "Wage gaps between women, on the one hand, and white males, on the other hand, have fallen since the 1970s" is true, according to research from the Pew Research Center.

Question 3

According to the text, a number of studies have concluded that black male workers earn about ________ percent less than white males due to labor-market discrimination.
A) 5
B) 15
C) 30
D) 50

Accepted Answer

Studies have shown that black male workers earn approximately 15 percent less than their white male counterparts, which is attributed to labor-market discrimination.

Question 4

Use the following to answer questions.
Exhibit: Discrimination 
-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', the wage rate for blacks will be given by:
A) J.
B) K.
C) J + K.
D) J - K.

Accepted Answer

The answer of Use the following to answer questions.
Exhibit: Discrimination...

Question 5

Affirmative action attempts to eliminate discrimination by:
A) subsidizing the wages of specific groups of labor.
B) decreasing the supply of specific groups of labor.
C) increasing the demand for specific groups of labor.
D) imposing heavy fines on employers who discriminate.

Accepted Answer

Affirmative action policies aim to increase the demand for specific groups of labor, such as women or minorities, in order to counteract the effects of discrimination and achieve greater diversity and representation in the workforce. This can take the form of preferential hiring, recruitment programs, or diversity initiatives. The goal is to create more opportunities for underrepresented groups and promote equal access to employment, education, and other opportunities.

Question 6

Which of the following is (are) examples of discriminatory practices?
A) Some groups experience lower wages.
B) Some groups experience fewer employment opportunities.
C) Some groups pay higher prices than others.
D) All of the above are examples of discriminatory practices.

Accepted Answer

Discriminatory practices refer to treating certain individuals or groups unequally or unfairly, based on certain factors like their race, gender, religion, age, etc. Lower wages, fewer employment opportunities, and higher prices for certain groups are all examples of discrimination. Hence, option D, i.e., all of the above, is the correct choice.

Question 7

Use the following to answer questions . Exhibit: Discrimination Model -(Exhibit: Discrimination Model) If blacks and whites have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, the wage of whites will be _______ , the quantity of whites hired will be ________ , the wage of blacks will be _______ , and the quantity of blacks hired will be ________ . A) W; L; W₁; L₁ B) W; L₁; W; L₁ C) W₁; L₁; W; L D) W₁; L; W; L₁

Accepted Answer

The wage of whites will be W, the quantity of whites hired will be L, the wage of blacks will be W1 (lower due to perceived lower productivity), and the quantity of blacks hired will be L1 (less than whites due to discrimination).

Question 8

Poverty can be defined either in absolute terms or in relative terms.

Accepted Answer

Absolute poverty is measured by a set standard of living conditions below which individuals are deemed to be living in poverty, while relative poverty is determined by comparing an individual's income or living standards to those of the rest of society.

Question 9

Use the following to answer questions . Exhibit: Discrimination Model -(Exhibit: Discrimination Model) If blacks and whites have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, the wage of whites will be _______ , the wage of blacks will be _______ , and the quantity hired of whites will be _______ . A) W₁; W; L₁ B) W; W₁; L C) W₁; W; L D) W; W₁ ; L₁

Accepted Answer

The answer of Use the following to answer questions .
Exhibit:...

Question 10

Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets. Then, according to the text, competition among profit-maximizing firms:
A) would not eliminate racism or sexism on the part of employers from the market.
B) would eliminate sexism but not racism on the part of employers from the market.
C) would eliminate both racism and sexism on the part of employers from the market.
D) has nothing to do with discrimination.

Accepted Answer

In a perfectly competitive market, firms are profit-maximizing and face competition from other firms. If racism and sexism do not exist on the customer side, firms that engage in discriminatory hiring practices would incur higher costs by not hiring the best or most cost-effective employees. Over time, competition would pressure these firms to eliminate discriminatory practices to lower costs and remain competitive, leading to the elimination of both racism and sexism on the part of employers.

Question 11

Research by Rob Grunewald and Art Rolnick, cited in the Case in Point on early intervention programs suggested that governments can better promote economic development by supporting early childhood programs rather than by:
A) replacing noncash assistance with cash assistance.
B) increasing class sizes at universities.
C) curtailing budgets and reducing deficits.
D) offering subsidies to new businesses or building sports stadiums.

Accepted Answer

The research cited suggests that supporting early childhood programs can better promote economic development, indicating that the other options (replacing noncash assistance with cash assistance, increasing class sizes, curtailing budgets and reducing deficits) would not be as effective. Additionally, offering subsidies to new businesses or building sports stadiums may not lead to sustained economic growth and could be viewed as inefficient use of public funds.

Question 12

If blacks are discriminated against in the labor market relative to whites, then the wage paid to blacks will be _______ whites and the number of blacks employed will be ______ whites, all other things equal.
A) lower than; lower than
B) higher than; lower than
C) higher than; higher than
D) lower than; higher than

Accepted Answer

This is because discrimination leads to lower wages for the discriminated group and thus fewer job opportunities for them. Hence, the wages paid to blacks will be lower than that paid to whites and the number of employed blacks will also be lower than that of employed whites, all other things equal.

Question 13

Use the following to answer questions.
Exhibit: Discrimination 
-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for blacks will be given by:
A) L - M.
B) L + M.
C) L.
D) M.

Accepted Answer

Employment for blacks will be given by the intersection of supply and demand curve, which is L.

Question 14

Use the following to answer questions.
Exhibit: Discrimination 
-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for whites will be given by:
A) L - M.
B) L + M.
C) L.
D) M.

Accepted Answer

The answer of Use the following to answer questions.
Exhibit: Discrimination...

Question 15

Much of the recently declining wage gap between white males and blacks and women is due to _______ blacks and women, but some of the decline is due to _______ .
A) the increase in labor-market participation by; the decrease in market competition
B) the acquisition of human capital by; a decrease in discrimination
C) the elimination of affirmative action for most; increased market activity
D) an increase in discrimination against; a reduction in discrimination against religious workers

Accepted Answer

The decline in wage gap between white males and blacks and women is due to the acquisition of human capital by blacks and women, which means they are getting better education, training, and skills. This increases their productivity and earnings potential. Additionally, there has been some decrease in discrimination against these groups, which has also contributed to the decline in wage gap.

Question 16

All of the following are possible sources of discrimination against black workers EXCEPT:
A) white workers prefer not to work with black workers.
B) employers prefer not to hire black workers.
C) black workers prefer to work with white workers.
D) consumers do not want to buy from black employees.

Accepted Answer

Black workers preferring to work with white workers is not a possible source of discrimination against black workers. Discrimination involves unequal treatment or prejudice against a certain group, and black workers preferring to work with white workers does not involve discrimination against black workers.

Question 17

Which of the following statements is true?
A) Discrimination can reduce the perceived marginal revenue products of some groups of workers and thus lower their wage.
B) Over the last fifty years, there was no reduction in the gap between white male wages and black male wages.
C) The average wage of black females has risen to about 85 percent of the average wage of white males.
D) The gap between the earnings of black women and white males is smaller than the earnings gap between black males and white males.

Accepted Answer

A) Discrimination can indeed reduce the perceived marginal revenue products of some groups of workers, leading to lower wages for those groups. This is because discrimination can influence employers' perceptions of the productivity of different groups, affecting wage offers.

Question 18

Use the following to answer questions.
Exhibit: Discrimination 
-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', the wage for whites will be given by:
A) J.
B) K.
C) J + K.
D) J - K.

Accepted Answer

The wage for whites is determined by the intersection of their demand curve (D') and the common supply curve (S), which is represented by point J.

Question 19

Use the following to answer questions . Exhibit: Discrimination Model -(Exhibit: Discrimination Model) If blacks and white have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, then the demand curve for blacks will be _______ and the wage for blacks will be _______ . A) D; W₁ B) D; W C) D₁; W₁ D) D₁; W

Accepted Answer

The demand curve will shift leftward for blacks due to employers' discriminatory attitudes, leading to a lower wage for black workers compared to white workers who have a similar supply curve. Therefore, the correct answer is C, which shows a shift in the demand curve for black workers (D₁) and a lower wage for black workers (W₁).

Question 20

If discrimination against blacks in the labor market is eliminated, then the wage paid to blacks will _______ and the number of blacks employed will _______ .
A) increase; increase
B) decrease; decrease
C) increase; remain unchanged
D) remain unchanged; increase

Accepted Answer

Eliminating discrimination means that employers are no longer biased towards or against a particular group of workers based on their race. This increases the pool of available workers for employers to choose from, including black workers, who may have previously been overlooked due to discriminatory attitudes. As a result, demand for black workers increases, which leads to an increase in wages and the number of blacks employed.

Quiz 18: Inequality, Poverty, and Discrimination

To the extent that labor market discrimination exists in a country:

Which of the following statements is true?

According to the text, a number of studies have concluded that black male workers earn about ________ percent less than white males due to labor-market discrimination.

Use the following to answer questions. Exhibit: Discrimination -(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', the wage rate for blacks will be given by:

Affirmative action attempts to eliminate discrimination by:

Which of the following is (are) examples of discriminatory practices?

Poverty can be defined either in absolute terms or in relative terms.

Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets. Then, according to the text, competition among profit-maximizing firms:

Research by Rob Grunewald and Art Rolnick, cited in the Case in Point on early intervention programs suggested that governments can better promote economic development by supporting early childhood programs rather than by:

If blacks are discriminated against in the labor market relative to whites, then the wage paid to blacks will be _ whites and the number of blacks employed will be whites, all other things equal.

Use the following to answer questions. Exhibit: Discrimination -(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for blacks will be given by:

Use the following to answer questions. Exhibit: Discrimination -(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for whites will be given by:

Much of the recently declining wage gap between white males and blacks and women is due to _ blacks and women, but some of the decline is due to _ .

All of the following are possible sources of discrimination against black workers EXCEPT:

Which of the following statements is true?

Use the following to answer questions. Exhibit: Discrimination -(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', the wage for whites will be given by:

If discrimination against blacks in the labor market is eliminated, then the wage paid to blacks will _ and the number of blacks employed will _ .