Question 1

A consensus view among economists regarding the possibility of labor-market discrimination is that

Accepted Answer

Economists generally agree that wage differences among different groups do not necessarily indicate discrimination on its own. Other factors, such as differences in human capital, job characteristics, and compensating differentials, should also be taken into account to determine if discrimination exists. While some employers may use compensating differentials to hide discriminatory practices, most economists do not believe that most wage differences are directly attributable to discrimination.

Question 2

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 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 conducted by Bertrand and Mullainathan found evidence of labor-market discrimination based on the fact that employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal. This suggested that employers were biased against job candidates with ethnic minority names, indicating discrimination in the labor market.

Question 4

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 5

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

Accepted Answer

Systematic discrimination against a group of workers would reduce the demand for workers in that group, resulting in lower wages. This is because discriminatory attitudes or policies may lead employers to believe that certain groups are less competent or reliable, making them less likely to be hired or promoted, which in turn reduces demand for their labor. This can result in a surplus of workers in that group, which further depresses wages.

Question 6

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

Accepted Answer

The racial segregation of streetcars in the southern cities was a result of laws that enforced segregation. Many southern states had laws that required segregation in public transportation, including streetcars. These laws were known as "Jim Crow" laws, and they were designed to enforce racial segregation in many aspects of life, including education, housing, and public services. Therefore, it was not a result of traditions, profits, or cost minimization.

Question 7

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

When consumers prefer left-handed workers, the marginal revenue product of left-handed workers rises, increasing their demand. As more left-handed workers are employed, the marginal product of each additional left-handed worker tends to decrease due to diminishing returns.

Question 8

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 state and local governments in the southern United States through Jim Crow laws, which enforced race-based segregation in all aspects of life. This was an example of government-mandated racial discrimination.

Question 9

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

All of the above can explain wage differences. Wage differences among different groups of workers can be explained by the human capital they acquire through education and job experience, as well as compensating differentials.

Question 10

If employers are profit-maximizers,then

Accepted Answer

While employers may be profit-maximizers, they are still subject to the demands and preferences of consumers. If consumers discriminate, it may still be profitable for employers to do the same. This means employment discrimination may persist even if it is not in the best financial interest of the employer.

Question 11

In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?

Accepted Answer

In competitive markets, firms that discriminate and thus lose potential profits from not hiring the best employees are replaced by firms that do not discriminate and thus can attain the best employees. This creates a natural remedy for discriminatory hiring practices because firms have an economic incentive to not discriminate.

Question 12

Given that the median male is better paid than the median female,which of the following is a valid explanation for wage differences?

Accepted Answer

All of the above can be a partial explanation.

Question 13

In the country of Freedonia,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

The answer of In the country of Freedonia,men and women...

Question 14

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 being served by employees of a certain gender, race, or ethnicity. This can occur even in competitive markets because firms may prioritize meeting customer demands in order to maximize profits.

Question 15

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 16

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

Accepted Answer

A competitive market may be consistent with a discriminatory wage differential if firms' customers have discriminatory preferences. In this case, firms may find it profitable to hire workers who better match the discriminatory preferences of their customers and pay them more than other workers. This results in a wage differential based on factors other than productivity or human capital.

Question 17

According to evidence provided by the U.S.government,the median black

Accepted Answer

According to evidence provided by the U.S. government, the median black man is paid 22 percent less than the median white man. The evidence provided does not support options A or B.

Question 18

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 19

If firms are competitive,then labor-market discrimination

Accepted Answer

In competitive labor markets, firms cannot afford to discriminate against certain groups of workers as it would lead to higher labor costs and decrease their competitiveness. Therefore, labor-market discrimination is unlikely to be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies. However, in monopolistic or imperfectly competitive markets, firms may have more power to discriminate against certain groups of workers, making labor-market discrimination a more significant issue.

Question 20

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

All three options are possible explanations for the observed differences. Discrimination could explain the wage differential between east and west if employers in the east have a preference for workers from their own region. Compensating differentials could explain the wage differential if working in the east has some non-monetary advantage (e.g. better working conditions or job opportunities) that compensates for the lower wage. Lower levels of human capital in the west could also explain the wage differential if workers there have less education or training than those from the east. Therefore, all three options could be correct.

Quiz 19: Earnings and Discrimination