Question 1

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Accepted Answer

Discriminatory hiring practices can be driven by customer preferences, such as a preference for hiring employees of a certain race, gender, or nationality. Even if markets are highly competitive, businesses may still give in to these preferences in order to satisfy their customer base. This type of discrimination is not a result of unrestricted entry and exit, lower costs of hiring, or perfectly elastic market demand.

Question 2

Which of the following statements is not correct?

Accepted Answer

Government regulation that prohibits discrimination is economically necessary because market forces do not support discrimination. The free market may not always eliminate discrimination in wages, as some discriminatory practices may be preferred by customers or may become entrenched within certain industries. Therefore, government intervention becomes necessary to ensure equal opportunities and fair treatment in the workplace.

Question 3

In the early 20th century,streetcar seating which was segregated by race

Accepted Answer

The answer of In the early 20th century,streetcar seating which...

Question 4

Discrimination may persist even in competitive markets when the source of the discrimination is

Accepted Answer

Discrimination may persist in competitive markets when the source of the discrimination is customer prejudice. For example, if customers refuse to do business with a company that employs people of a certain race or gender, then that company may be forced to discriminate in its hiring practices in order to retain business. In this scenario, the company is not discriminating out of its own prejudice, but rather reacting to the discriminatory preferences of its customers. This type of discrimination is known as statistical discrimination.

Question 5

"The customer is always right" explains

Accepted Answer

The answer of "The customer is always right" explains
...

Question 6

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

Accepted Answer

Segregated streetcars were mandated by the government through laws such as Jim Crow laws in the southern United States. This was an example of government-mandated racial discrimination where black passengers had to sit in separate areas of the streetcars and were not provided with the same facilities as white passengers.

Question 7

A 1990 study of the market for collectable baseball cards suggested

Accepted Answer

The study found that cards for white players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable black players.

Question 8

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Accepted Answer

If women, on balance, have more human capital than men, employers would demand more female labor because women would have a higher productivity rate due to their superior education and experience. Therefore, the demand for female labor would be higher than the demand for male labor.

Question 9

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences.They argue that market economies provide a natural remedy to employer discrimination,and that remedy is

Accepted Answer

The profit motive is the best choice because it is the driving force behind employer decision-making in a market economy. Employers strive to maximize profits, and if they discriminate against certain groups by paying them less, they risk losing valuable employees to competitors who offer higher wages, and losing customers who may boycott their products or services. The profit motive ensures that employers have an incentive to pay employees based on their skills and productivity, rather than their race, gender, or other irrelevant factors.

Question 10

A competitive market may be consistent with a discriminatory wage differential if

Accepted Answer

If firms' customers have discriminatory preferences, they may be willing to pay a higher price or prefer to buy from employees of a certain race or gender, leading firms to hire certain groups at higher wages. This would be consistent with a competitive market as firms are responding to consumer demand, but would result in a discriminatory wage differential. Options B and C refer to non-discriminatory wage differentials which are not relevant to the question.

Question 11

It is likely that,if we could measure the quality as well as the quantity of education,

Accepted Answer

The answer of It is likely that,if we could measure...

Question 12

The case study of segregated street cars in southern cities illustrates which of the following?

Accepted Answer

The answer of The case study of segregated street cars...

Question 13

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Accepted Answer

The answer of In the early twentieth century,racial segregation of...

Question 14

Men and women tend to choose different types of occupations,and so

Accepted Answer

The answer of Men and women tend to choose different...

Question 15

Evidence from a study of the market for baseball players using 1960s data

Accepted Answer

The evidence from the study suggested that there was some consumer-driven wage discrimination in the market for baseball players, indicating that consumer preferences played a role in determining player salaries. There was not sufficient evidence to support choices A, B, or D.

Question 16

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Accepted Answer

Laws such as Jim Crow laws mandated racial segregation in public spaces, including on streetcars, in the southern United States during the early twentieth century.

Question 17

If firms are competitive,then labor-market discrimination

Accepted Answer

In a competitive labor market, firms cannot afford to discriminate against potential employees based on factors such as race, gender, or ethnicity. If they do, they will lose out on hiring the most qualified candidates and their competitors will have an advantage. While discriminatory preferences among customers may still exist, in the long run, discriminatory policies by the government are likely to be eliminated through legislation and enforcement, further reducing the impact of labor-market discrimination. However, in non-competitive markets, such as monopolies or oligopolies, there is less pressure on firms to be efficient and hire the best candidates, making labor-market discrimination more likely to exist.

Question 18

Evidence from a 1988 study of the market for professional basketball players

Accepted Answer

The 1988 study found some evidence of consumer-driven wage discrimination in the market for professional basketball players. This suggests that player salaries were influenced by factors such as their popularity with fans and media, rather than solely based on their on-court performance.

Question 19

Regarding wage differences among various groups of workers - blacks and whites,men and women,etc.- most economists believe that

Accepted Answer

Most economists believe that some of the wage differences among various groups of workers are attributable to discrimination, but there is disagreement about how much of the wage difference is caused by discrimination.

Question 20

Studies of professional sports teams suggest that,in sports,racial discrimination is

Accepted Answer

The answer of Studies of professional sports teams suggest that,in...

Quiz 19: Earnings and Discrimination