TBChap 009

Chapter 09
Labor Market Discrimination
Multiple Choice Questions
1.
Which of the following statements regarding gender differences in international labor markets is true?
A.
The difference in male and female wages in the United States is less than in almost any other developed
country.
B.
The difference in male and female wages in the United States is about the average of other developed
countries.
C.
Men and women are typically employed at the same rate in developed countries.
D.
There is a sizeable wage gap between men and women in most developed countries.
E.
There is no discernable wage gap between men and women in most developed countries.
2. In a discrimination model, nepotism is best described as
A. a desire to maximize profit regardless of who one hires.

B. a preference to hire a certain type of worker, e.g., a worker of one's same race.
C. a preference to hire an integrated workforce.
D. a desire to advance social causes over maximizing profits.
E. hiring minority workers but then firing them quickly.
9-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3. The perceived cost of hiring a black worker for an employer who is prejudiced against blacks will exceed
A. the cost of hiring whites.

B. the wage of whites.
C. the wage of blacks.
D. the white-black wage gap.
E. total profit.
4. Discrimination in the workforce
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.
5. Owners of men's clothing stores traditionally discriminate against males when making hiring decisions
because they believe that male customers are more eager to buy clothing from female associates. In reality,
however, one's sex does not affect one's sales (i.e., one's sex does not affect one's productivity).
Discrimination of this sort throughout the labor market has resulted in clothing stores paying male
associates lower wages than they pay female associates. A new men's clothing store enters the industry
without these prejudicial beliefs. Which of the following outcomes is not likely to come about?
A. The new store will hire more male associates than the typical existing store.
B. The new store will make greater profit than it would if it would hold similarly biased views.
C. The new store will have lower per-employee labor costs than existing stores.
D. The new store will likely have lower prices than existing stores.
E. The new store will have to hire female associates to compete with its competition.
6. Economic theory suggests that discriminating employers will be driven from the marketplace when the
output market is competitive. Why?
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.
9-2
7.
Assume whites and blacks are equally productive. The going wage for whites is $16 per hour, while the
going wage for blacks is $10 per hour. Which of the following will characterize the labor market
equilibrium when some employers have discriminatory preferences against hiring black workers?
A.
All discriminating employers will hire only whites.
B.
All firms will earn the same amount of profit regardless of their discriminatory preferences.
C.
Any employer with a discrimination coefficient greater than 0.6 will hire only white workers.
D.
Any employer with a discrimination coefficient greater than 1.6 will hire only black workers.
E.
Any employer with a positive discrimination coefficient will hire only white workers.
8. 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?
A. All firms with d ≠ d* will employ all blacks or all whites.

B. Profits fall as d increases as long as d < d*.
C. In the long run, discrimination will be competed away in a competitive labor market.
D. All discriminating firms hire only white workers.
E. All firms with d > d* earn the same amount of profit.
9. What is the main theoretical implication regarding the standard employer-based discrimination model?
A. Most firms are discriminatory.

B. Workers don't care if firms are discriminatory.
C. Discrimination is not profitable.
D. Discrimination can only occur if there are exactly two types of labor (e.g., white and black).
E. Discrimination can only occur in competitive labor markets.
9-3
10. A firm that discriminates against black labor will certainly
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.
11. 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?
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.
12. Which one of the following statements concerning employee discrimination is not true?
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.
13. 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
A. employer discrimination.
B. employee discrimination.
C. consumer discrimination.
D. statistical discrimination.
E. racial discrimination.
9-4
14.
Customer discrimination results in
A.
lower wages for the discriminated-against worker group.
B.
a lower output price regardless of who the firm hires.
C.
a segregated workforce.
D.
lower firm profits.
E.
all of these are results of customer discrimination.
15. The Human Resources department at a firm has two job candidates for one position. Both candidates went
to the same college, took the same classes and have the same academic record. They both performed well
in the interview and said that they see the job as a long-term position. One applicant is male; the other is
female. Historically within the firm, women quit their jobs at higher rates than do men. Because of this, the
firm fills the position with the male candidate. What kind of discrimination is this?
A. Employee discrimination.
B. Consumer discrimination.
C. Employer discrimination.
D. Statistical discrimination.
E. None of the above.
16. A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's
score on the test. The firm then pays the new worker a wage of w = 0.6T + 0.4G where G is the average test
score for the worker's gender-16 for women; 12 for men. How much more is a woman paid than a man
when both scored a 10 on the test?
A. $0.20
B. $0.40
C. $0.80
D. $1.60
E. $3.20
9-5
17. 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?
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.
18. Which of the following causes a difference in wages but does not necessarily qualify 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.
19. Over the last 30 years in the United States, the black-white earnings ratio for women has __________ and
for men has __________.
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
20. If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average black
salary is $36,000, which of the following is not likely to be a significant cause of this difference given U.S.
labor market demographics?
A. Whites are more inclined than blacks to work part-time.

B. Blacks have less education than whites.
C. Labor market discrimination.
D. Whites are more likely than blacks to hold positions in upper management.
E. Whites are more likely than blacks to own their own business.
9-6
21.
From 1980 to 2012, the black-white wage ratio for males in the United States
A. held constant at about 0.7.

B.
fell steadily from about 1.0 in 1980 to 0.5 in 2012.
C.
increased modestly from 0.7 in 1980 to about 0.8 in 2012.
D.
increased substantially from under 0.5 in 1980 to almost 1.0 in 2012.
E.
increased substantially from 0.4 in 1980 to over 0.8 in 2012.
22. When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?
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.
23. 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?
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.
9-7
24. Occupational crowding refers to
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.
25.
From 1980 to 2012, the female-male wage ratio in the United States

B.
C.
increased modestly from 0.5 in 1980 to almost 0.6 in 2012.
D.
increased substantially from 0.6 in 1980 to almost 0.8 in 2012.
E.
increased substantially from 0.4 in 1980 to just under 0.7 in 2012.
9-8
26.
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, much of this difference is attributable to
A.
differences in education levels.
B.
differences in the returns to skill.
C.
gender discrimination.
D.
differences in labor market experience.
E.
differences in productivity.
27. The female-male wage gap in the United States
A. has been increasing over the last 30 years.

B. has been decreasing over the past 30 years.
C. is non-existent.
D. has been decreasing so much that while a raw wage gap still exists it is quite small.
E. will likely change from negative to positive over the next decade.
28. 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?
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.
9-9
29. 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. 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.
30. The empirical and theoretical results on occupational crowding in the United States suggest that
A. occupational crowding is substantial in the United States, but this should not be thought of as a source of
discrimination.
B. occupational crowding is substantial in the United States, and much of this should be thought of as a
source of discrimination.
C. occupational crowding is substantial in the United States, but occupational crowding is unrelated to
discrimination.
D. there is minimal occupational crowding in the United States, and therefore it cannot be a source of
discrimination.
E. there is minimal occupational crowding in the United States, but this is still thought to be an important
cause of racial discrimination but not gender discrimination.
9-10
Chapter 09 Labor Market Discrimination Answer Key
Multiple Choice Questions
1.
Which of the following statements regarding gender differences in international labor markets is true?
A.
The difference in male and female wages in the United States is less than in almost any other
developed country.
B.
The difference in male and female wages in the United States is about the average of other
developed countries.
C.
Men and women are typically employed at the same rate in developed countries.
D.
There is a sizeable wage gap between men and women in most developed countries.
E.
There is no discernable wage gap between men and women in most developed countries.
AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 01 Easy
Topic: Race and Gender in the Labor Market
2. In a discrimination model, nepotism is best described as
A. a desire to maximize profit regardless of who one hires.

B. a preference to hire a certain type of worker, e.g., a worker of one's same race.
C. a preference to hire an integrated workforce.
D. a desire to advance social causes over maximizing profits.
E. hiring minority workers but then firing them quickly.

Blooms: Remember
Difficulty: 01 Easy
Topic: The Discrimination Coefficient
9-11
3. The perceived cost of hiring a black worker for an employer who is prejudiced against blacks will
exceed
A. the cost of hiring whites.

B. the wage of whites.
C. the wage of blacks.
D. the white-black wage gap.
E. total profit.

Blooms: Remember
Difficulty: 01 Easy
Topic: Employer Discrimination
4. Discrimination in the workforce
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.

Blooms: Understand
Difficulty: 02 Medium
5. Owners of men's clothing stores traditionally discriminate against males when making hiring decisions
because they believe that male customers are more eager to buy clothing from female associates. In
reality, however, one's sex does not affect one's sales (i.e., one's sex does not affect one's productivity).
Discrimination of this sort throughout the labor market has resulted in clothing stores paying male
associates lower wages than they pay female associates. A new men's clothing store enters the industry
without these prejudicial beliefs. Which of the following outcomes is not likely to come about?
A. The new store will hire more male associates than the typical existing store.
B. The new store will make greater profit than it would if it would hold similarly biased views.
C. The new store will have lower per-employee labor costs than existing stores.
D. The new store will likely have lower prices than existing stores.
E. The new store will have to hire female associates to compete with its competition.

Blooms: Understand
9-12
6. Economic theory suggests that discriminating employers will be driven from the marketplace when the
output market is competitive. Why?
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.

Blooms: Understand
7.
Assume whites and blacks are equally productive. The going wage for whites is $16 per hour, while the
going wage for blacks is $10 per hour. Which of the following will characterize the labor market
equilibrium when some employers have discriminatory preferences against hiring black workers?
A.
All discriminating employers will hire only whites.
B.
All firms will earn the same amount of profit regardless of their discriminatory preferences.
C.
Any employer with a discrimination coefficient greater than 0.6 will hire only white workers.
D.
Any employer with a discrimination coefficient greater than 1.6 will hire only black workers.
E.
Any employer with a positive discrimination coefficient will hire only white workers.
AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 03 Hard
9-13
8. 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?
A. All firms with d ≠ d* will employ all blacks or all whites.

B. Profits fall as d increases as long as d < d*.
C. In the long run, discrimination will be competed away in a competitive labor market.
D. All discriminating firms hire only white workers.
E. All firms with d > d* earn the same amount of profit.

Blooms: Understand
9. What is the main theoretical implication regarding the standard employer-based discrimination model?
A. Most firms are discriminatory.

B. Workers don't care if firms are discriminatory.
C. Discrimination is not profitable.
D. Discrimination can only occur if there are exactly two types of labor (e.g., white and black).
E. Discrimination can only occur in competitive labor markets.

Blooms: Understand
10. A firm that discriminates against black labor will certainly
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.

Blooms: Understand
9-14
11. 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?
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.

Blooms: Apply
Difficulty: 03 Hard
12. Which one of the following statements concerning employee discrimination is not true?
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.

Blooms: Remember
Difficulty: 01 Easy
13. 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
A. employer discrimination.
B. employee discrimination.
C. consumer discrimination.
D. statistical discrimination.
E. racial discrimination.

Blooms: Understand
Topic: Customer Discrimination
9-15
14.
Customer discrimination results in
A.
lower wages for the discriminated-against worker group.
B.
a lower output price regardless of who the firm hires.
C.
a segregated workforce.
D.
lower firm profits.
E.
all of these are results of customer discrimination.

Blooms: Understand
Topic: Customer Discrimination
15. The Human Resources department at a firm has two job candidates for one position. Both candidates
went to the same college, took the same classes and have the same academic record. They both
performed well in the interview and said that they see the job as a long-term position. One applicant is
male; the other is female. Historically within the firm, women quit their jobs at higher rates than do
men. Because of this, the firm fills the position with the male candidate. What kind of discrimination is
this?
A. Employee discrimination.
B. Consumer discrimination.
C. Employer discrimination.
D. Statistical discrimination.
E. None of the above.

Blooms: Understand
Topic: Statistical Discrimination
9-16
16. A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's
score on the test. The firm then pays the new worker a wage of w = 0.6T + 0.4G where G is the average
test score for the worker's gender-16 for women; 12 for men. How much more is a woman paid than a
man when both scored a 10 on the test?
A. $0.20
B. $0.40
C. $0.80
D. $1.60
E. $3.20

Blooms: Apply
Difficulty: 03 Hard
Topic: Statistical Discrimination
17. 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?
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.

Blooms: Apply
Difficulty: 03 Hard
Topic: Measuring Discrimination
18. Which of the following causes a difference in wages but does not necessarily qualify 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.

Blooms: Remember
Difficulty: 01 Easy
Topic: Measuring Discrimination
9-17
19. Over the last 30 years in the United States, the black-white earnings ratio for women has __________
and for men has __________.
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

Blooms: Remember
Difficulty: 01 Easy
Topic: Determinants of the Black-White Wage Ratio
20. If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average
black salary is $36,000, which of the following is not likely to be a significant cause of this difference
given U.S. labor market demographics?
A. Whites are more inclined than blacks to work part-time.

B. Blacks have less education than whites.
C. Labor market discrimination.
D. Whites are more likely than blacks to hold positions in upper management.
E. Whites are more likely than blacks to own their own business.

Blooms: Remember
Difficulty: 01 Easy
21.
From 1980 to 2012, the black-white wage ratio for males in the United States

B.
C.
increased modestly from 0.7 in 1980 to about 0.8 in 2012.
D.
increased substantially from under 0.5 in 1980 to almost 1.0 in 2012.
E.
increased substantially from 0.4 in 1980 to over 0.8 in 2012.

9-18
Blooms: Understand
22. When the labor force participation rate falls, the average wage in the economy is likely to increase.
Why?
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.

Blooms: Understand
23. 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?
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.

Blooms: Understand
9-19
24. Occupational crowding refers to
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.

Blooms: Remember
Difficulty: 01 Easy
Topic: Determinants of the Female-Male Wage Ratio
25.
From 1980 to 2012, the female-male wage ratio in the United States

B.
C.
increased modestly from 0.5 in 1980 to almost 0.6 in 2012.
D.
increased substantially from 0.6 in 1980 to almost 0.8 in 2012.
E.
increased substantially from 0.4 in 1980 to just under 0.7 in 2012.

Blooms: Remember
Difficulty: 01 Easy
9-20
26.
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, much of this difference is attributable to
A.
differences in education levels.
B.
differences in the returns to skill.
C.
gender discrimination.
D.
differences in labor market experience.
E.
differences in productivity.

Blooms: Remember
Difficulty: 01 Easy
27. The female-male wage gap in the United States
A. has been increasing over the last 30 years.

B. has been decreasing over the past 30 years.
C. is non-existent.
D. has been decreasing so much that while a raw wage gap still exists it is quite small.
E. will likely change from negative to positive over the next decade.

Blooms: Remember
Difficulty: 01 Easy
9-21
28. 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?
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.

Blooms: Understand
29. 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. 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.

Blooms: Understand
30. The empirical and theoretical results on occupational crowding in the United States suggest that
A. occupational crowding is substantial in the United States, but this should not be thought of as a
B. occupational crowding is substantial in the United States, and much of this should be thought of as a
C. occupational crowding is substantial in the United States, but occupational crowding is unrelated to
discrimination.
D. there is minimal occupational crowding in the United States, and therefore it cannot be a source of
discrimination.
E. there is minimal occupational crowding in the United States, but this is still thought to be an
important cause of racial discrimination but not gender discrimination.

Blooms: Understand
9-22

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Chapter 09

Labor Market Discrimination

Multiple Choice Questions

2. In a discrimination model, nepotism is best described as

A. a desire to maximize profit regardless of who one hires.

A. the cost of hiring whites.

4. Discrimination in the workforce

A. Customers will refuse to purchase from a discriminating employer.

A. All firms with d ≠ d* will employ all blacks or all whites.

A. Most firms are discriminatory.

A. hire all white workers.

A. The firm hires all white workers.

A. Employers have no reason to employ a segregated workforce if there is employee discrimination.

A. $0.00 to differences in work experience; $2.50 to discrimination/unobservable characteristics.

A. been relatively flat; steadily increased

A. Whites are more inclined than blacks to work part-time.

A. held constant at about 0.7.

A. There will be no effect because the firm is currently color-blind.

A. held constant at about 0.7.

27. The female-male wage gap in the United States

A. has been increasing over the last 30 years.

A. Women are more inclined than men to work part-time.

Multiple Choice Questions

AACSB: Reflective Thinking

2. In a discrimination model, nepotism is best described as

A. a desire to maximize profit regardless of who one hires.

AACSB: Reflective Thinking

A. the cost of hiring whites.

AACSB: Reflective Thinking

4. Discrimination in the workforce

AACSB: Reflective Thinking

AACSB: Reflective Thinking

A. Customers will refuse to purchase from a discriminating employer.

AACSB: Reflective Thinking

AACSB: Analytical Thinking

A. All firms with d ≠ d* will employ all blacks or all whites.

AACSB: Reflective Thinking

A. Most firms are discriminatory.

AACSB: Reflective Thinking

10. A firm that discriminates against black labor will certainly

A. hire all white workers.

AACSB: Reflective Thinking

A. The firm hires all white workers.

AACSB: Analytical Thinking

A. Employers have no reason to employ a segregated workforce if there is employee discrimination.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Analytical Thinking

17. Consider the following data for men and women:

A. $0.00 to differences in work experience; $2.50 to discrimination/unobservable characteristics.

AACSB: Analytical Thinking

AACSB: Reflective Thinking

A. been relatively flat; steadily increased

AACSB: Reflective Thinking

A. Whites are more inclined than blacks to work part-time.

AACSB: Reflective Thinking

A. held constant at about 0.7.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

A. There will be no effect because the firm is currently color-blind.

AACSB: Reflective Thinking