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1. In a given market, women with the same skills as men earn less. Which of the

ID: 1119740 • Letter: 1

Question

1. In a given market, women with the same skills as men earn less. Which of the following would suggest that the main source of discrimination against women is employers?

Companies make the same profit whether they hire women or men.

Male managers who work with women must be paid more.

Companies hiring women offer more day care and other job amenities favored by women.

The companies hiring more women make a larger profit.

2. 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?

Whites are more inclined than blacks to work part-time

Blacks have less education than whites

Labor market discrimination.

3. Assume that firms discriminate against black workers. In a discrimination model, an increase in discrimination coefficient would lead to:

An increase in profits

A decrease in profits for black firms

Also a decrease in profits among first who were originally employing white workers

a.

Companies make the same profit whether they hire women or men.

b.

Male managers who work with women must be paid more.

c.

Companies hiring women offer more day care and other job amenities favored by women.

d.

The companies hiring more women make a larger profit.

Explanation / Answer

1

Male managers who work with women must be paid more.

as male are paid more

2.

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

the above is answer

3.

A decrease in profits for black firms

the above is the answer

b.

Male managers who work with women must be paid more.

as male are paid more

2.

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

the above is answer

3.

A decrease in profits for black firms

the above is the answer