Question 1

In discussing discrimination and the wage differences that exist between men and women and between blacks and whites,it has been said that "the disease is political even if the symptom is economic." What does this mean?

Accepted Answer

The answer of In discussing discrimination and the wage differences...

Question 2

Which of the following represents an example of labor-market discrimination? (i)	An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha.
(ii)	An employer is more likely to grant an interview to person with a traditionally "masculine" name such as "Alex" than to a person with a traditionally "feminine" name such as "Emily."
(iii)	An employer is more likely to grant an interview to a person graduating from Yale than from the local community college.
(iv)	An employer is more likely to grant an interview to a person graduating with a physics major than with a physical education major.

Accepted Answer

Labor-market discrimination occurs when individuals are treated differently based on characteristics such as race or gender, rather than qualifications or experience. Statements (i) and (ii) reflect discrimination based on race and gender, respectively.

Question 3

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

The study found evidence of labor-market discrimination based on the finding that employers were more likely to request interviews from job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal.

Question 4

If employers are profit-maximizers,then

Accepted Answer

Although employers aim to maximize profits, employment discrimination may persist if consumers also discriminate. For example, if consumers prefer to purchase products or services from employees who belong to a particular demographic group, employers may discriminate in their hiring practices to cater to consumer preferences and maximize profits. Therefore, even if employers want to eliminate discrimination, they may find it difficult to do so if consumers discriminate.

Question 5

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Accepted Answer

If there is systematic discrimination against a group of workers, then they are likely to face lower demand for their services, which will result in a lower wage being paid to them. This happens because discrimination leads to employers undervaluing the skill and ability of such groups and, therefore, being less willing to hire them or pay them what they are actually worth. In other words, the discriminatory practices result in a lower demand for workers in that group, causing their wages to be lower.

Question 6

In the country of Amazonia,men and women have the same level of education and choose different forms of work in the same proportions.The only real difference is that men typically stay home to raise young children,returning to the work force after their children enter elementary school.If no discrimination exists,then we would expect that,on average,

Accepted Answer

Since men typically stay home to raise children and take a break from their careers, they may have less continuous work experience compared to women, potentially leading to lower average earnings.

Question 7

Which of the following represents an example of labor-market discrimination?

Accepted Answer

The answer of Which of the following represents an example...

Question 8

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

Accepted Answer

The answer of Discrimination may persist even in competitive markets...

Question 9

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country.People from the west also receive lower wages than people from the east.From this information alone,we can conclude that it is possible that

Accepted Answer

The answer of People who grew up in the western...

Question 10

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

Accepted Answer

Segregated streetcars in the southern United States were mandated by Jim Crow laws and other racially discriminatory measures put in place by local and state governments. It was not a result of private firms acting on their own or government efforts to halt discrimination.

Question 11

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 12

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

Accepted Answer

Laws requiring segregation were put in place in many southern cities, including on streetcars. This was a result of the broader legal system enforcing racial segregation at the time.

Question 13

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 14

Which of the following statements is not correct?

Accepted Answer

An efficiency wage is a higher wage that a nondiscriminating employer pays to a worker to increase the worker's productivity. Therefore, statement C is not correct as it suggests the opposite.

Question 15

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

Accepted Answer

Streetcar firms often opposed racial segregation because it was costly to enforce and could reduce ridership, impacting their profits.

Question 16

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following? (i)	Before the passage of laws that mandated segregation of races on streetcars,segregation of smokers and nonsmokers was more common than segregation of races.
(ii)	The firms that ran the streetcars were unanimous in their support of laws that required segregation of races.
(iii)	firms that ran the streetcars were more interested in profits than in segregating customers by race.

Accepted Answer

Before segregation laws, streetcars often segregated smokers and nonsmokers rather than races, and firms prioritized profits over racial segregation.

Question 17

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

Accepted Answer

Customer preferences can lead to discriminatory hiring practices, even in competitive markets. This occurs when customers express a preference for or against certain characteristics of the employees of a business, such as race or gender. In order to satisfy these customer preferences, businesses may engage in discriminatory hiring practices, even if it is not economically rational to do so.

Question 18

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 for goods or services produced by workers of a certain race or gender, leading to firms being able to pay those workers a higher wage despite being in a competitive market. This is an example of customer-based wage discrimination. Compensation differentials and differences in human capital are not necessarily related to a discriminatory wage differential in a competitive market.

Question 19

Suppose that consumers suddenly prefer to do business with left-handed workers instead of right-handed workers.We would expect that the marginal revenue product of

Accepted Answer

The answer of Suppose that consumers suddenly prefer to do...

Question 20

If firms are competitive,then labor-market discrimination

Accepted Answer

In a competitive market, firms are price takers and cannot afford to discriminate against any segment of the labor force as it will put them at a competitive disadvantage. Therefore, labor-market discrimination is likely to be resolved in the long run. However, discrimination may exist in the short run due to customers exhibiting discriminatory preferences or government policies. In monopolistic or imperfectly competitive markets, firms have more market power which may allow them to discriminate but may also attract entry of new firms that do not discriminate, resulting in market forces reducing discriminatory behavior. Option A is incorrect as discrimination may exist in the short run. Option B is incorrect as monopolistic or imperfectly competitive markets may also attract entry of non-discriminating firms. Option D is incorrect as the zero-profit condition does not necessarily lead to discrimination.

Quiz 19: Earnings and Discrimination