Question 1

Discrimination occurs in the taste-for-discrimination model because discriminating employers

Accepted Answer

In the taste-for-discrimination model, discriminating employers act as if hiring certain segments of the workforce incurs additional costs, which they perceive as increasing the costs of production.

Question 2

In the fourth quarter 2012 the median weekly earning for men in current dollars was $868, while the median weekly earnings for women was $690.The male/female earnings ratio was

Accepted Answer

The male/female earnings ratio is calculated by dividing the median weekly earnings for men by the median weekly earnings for women: $868 / $690 = 1.258, which rounds to 1.23.

Question 3

Another term for the income disparity between two groups of the workforce is

Accepted Answer

An earnings ratio refers to the difference in income between two groups of workers. The Gini index and wealth index are measures of overall inequality in a society, while the GNH (Gross National Happiness) is a measure of well-being that takes into account factors beyond just income.

Question 4

The form of labor market discrimination that results in Joan receiving a higher wage not because of productivity but due to some other characteristic is

Accepted Answer

Wage discrimination refers to paying different wages to individuals for the same work based on their personal characteristics such as race, gender, or age, rather than their job performance or productivity. In the given scenario, Joan is receiving a higher wage not because of her productivity but due to some other characteristic, which is an example of wage discrimination.

Question 5

The percent difference in earnings between two groups is known as the

Accepted Answer

The percent difference in earnings between two groups is commonly referred to as the pay gap. The earnings ratio refers to the ratio of earnings between two groups, which is different from the percent difference. The Gini Index is a measure of income inequality, which does not necessarily reflect the percent difference between two groups of earners. GNH (Gross National Happiness) is a measure of a country's overall happiness and well-being, which is not directly related to earnings or income.

Question 6

Joan will always go to another female cashier when shopping.This would be an example of

Accepted Answer

Joan's preference for female cashiers is an example of customer discrimination, where a customer's personal bias influences their choice.

Question 7

The taste-based model of discrimination assumes discrimination occurs because people

Accepted Answer

The taste-based model of discrimination assumes that individuals have a preference for or against certain groups based on their personal tastes or prejudices. Thus, discrimination occurs because individuals derive less utility from working with or interacting with certain groups. This aligns with Choice B, which states that individuals will receive less utility if they have to work with the selected group.

Question 8

Members of the labor market who are equally productive but treated differently based on characteristics not related to productivity are victims of

Accepted Answer

Discrimination is the unfair treatment of people based on characteristics such as race, gender, age, or disability that are not related to their productivity. It can result in equally productive workers being treated differently in terms of employment opportunities, wages, and other aspects of the labor market. Harassment, segregation, and labor disputes may also be related to discrimination, but they are not the most accurate descriptions of the situation presented in the question.

Question 9

The median weekly earnings for Asian men in the fourth quarter of 2012 were $1,051.The median weekly earnings for White men for the same time period were $895.The earnings ratio of Asian men to White men is

Accepted Answer

The earnings ratio of Asian men to White men is calculated by dividing the median weekly earnings of Asian men by the median weekly earnings of White men. That is, $1,051 divided by $895, which equals 1.17. Therefore, the answer is B) 1.17.

Question 10

___________ discrimination occurs when customers base their purchasing decisions on the race, sex, or to other demographic characteristics of the workers with whom they interact.

Accepted Answer

Customer discrimination occurs when customers base their purchasing decisions on the race, sex or other demographic characteristics of the workers with whom they interact. Statistical discrimination is based on generalizations about a group, employer discrimination is when an employer discriminates in their hiring or promotion practices, and taste-based discrimination is when individuals have a preference for or against certain groups.

Question 11

Labor market discrimination includes

Accepted Answer

Labor market discrimination can occur in both employment and wages. Employment discrimination includes discrimination based on race, gender, age, disability, or other protected characteristics in the hiring, promotion, or firing of employees. Wage discrimination refers to paying employees of different genders or races or other protected characteristics different wages for the same job or work of equal value. Industrial discrimination is not a recognized term for labor market discrimination.

Question 12

The comparison of earnings of two groups of the labor force is known as

Accepted Answer

An earnings ratio is the comparison of earnings of two groups of the labor force. The Gini index measures income inequality, the wealth index measures the distribution of wealth, and the GNH (Gross National Happiness) measures the well-being and happiness of a country.

Question 13

The model of discrimination that illustrates how preferences create discrimination in the work place is the

Accepted Answer

The taste-based model of discrimination, proposed by Gary Becker, illustrates how discrimination in the workplace can arise from the preferences or "tastes" of employers, employees, or customers, leading to differential treatment based on characteristics like race, gender, or ethnicity.

Question 14

Predominant economic theories of discrimination can be categorized by

Accepted Answer

The predominant economic theories of discrimination can be categorized as personal prejudice and incomplete information. Personal prejudice refers to when an individual's own prejudices lead them to discriminate against a certain group. Incomplete information refers to situations where there is a lack of information available about an individual or group, which leads to discrimination based on assumptions or stereotypes. Both of these factors can contribute to discrimination in different ways, and understanding these theories can help to design effective policies to combat discrimination.

Question 15

The form of labor market discrimination that results in Joe being hired before Jane because of sex, race, or other demographic characteristics is

Accepted Answer

Employment discrimination refers to the unequal treatment of individuals based on their sex, race, or other demographic characteristics in the hiring process or on the job. Wage discrimination, on the other hand, refers to unequal pay for unequal work. Industrial discrimination and harassment are not forms of labor market discrimination.

Question 16

The U.S.workforce has become

Accepted Answer

According to studies, the U.S. workforce has become more racially and gender diverse over the past 30 years, with an increase in the representation of women and people of color in various job sectors. However, there is still work to be done in achieving complete diversity and inclusivity in the workforce.

Question 17

Which of the following is an example of employment discrimination?

Accepted Answer

Jacob being hired over Nattie because of her gender is a clear example of employment discrimination. It is illegal to deny employment to someone based on their gender or any other protected characteristic. The other choices involve differences in pay that are not directly linked to discriminatory factors.

Question 18

Sources of the pay gaps among groups in the work force can be found using

Accepted Answer

Demand and supply models are commonly used in economics to analyze wage differences among different groups in the workforce. Such models consider factors such as education, experience, occupation, industry, and geographic location to explain why people in certain groups earn more or less than others. Marginal analysis and cost-benefit analysis are useful tools for decision-making in various economic situations but are not directly applicable to analyzing pay gaps. The aggregate demand and aggregate supply model is mainly used to understand macroeconomic issues such as inflation and recessions and is not directly relevant to analyzing pay gaps.

Question 19

In the fourth quarter 2012 the median weekly earning for men in current dollars was $868, while the median weekly earnings for women was $690.The pay gap between men and women is

Accepted Answer

To find the pay gap between men and women, we need to calculate the percentage difference between their median weekly earnings. The calculation is as follows:

Pay gap = ((men's earnings - women's earnings) / men's earnings) * 100

Using the data given:

Pay gap = ((868 - 690) / 868) * 100 = 20.55

Therefore, the pay gap between men and women is 20.55%, or approximately 0.27 as a decimal or choice B.

Question 20

When employers base their employment decisions on prejudice against certain workers ______________ occurs.

Accepted Answer

Employer discrimination occurs when employers make employment decisions based on prejudice against certain workers.

Quiz 19: The Economics of Labor Market Discrimination