Multiple choice: 1. What evidence is typically used to substantiate claims that
ID: 1157909 • Letter: M
Question
Multiple choice:
1. What evidence is typically used to substantiate claims that labor market discrimination is practiced in a particular country?
A) court cases and out-of-court settlements and audits of hiring practices and loan/grant applications
B) statistical analysis of wage patterns of men/women and legislation to eliminate equal pay
C) incomplete information about worker productivity and monopoly power
D) Both a and b are correct
2. Why is labor market discrimination a problem?
A) It reduces incentives for investment in human capital which has productivity and growth consequences for society, and income consequences for the individual.
B) It reduces output (GDP) by discouraging the best job match and has consequences of job satisfaction
C) It contributes to dis-economies of scale and lack of task specialization which reduces total factor productivity
D) It creates a trade-off between the formal and informal labor markets
E) Both a and b are correct
3. Why might the equal pay act have little affect on closing the gender wage gap?
A) it is not very well enforced
B) employers avoid hiring men and women under the same titles
C) It doesn’t address discrimination in hiring, promotion and training
D) occupational segregation is increasing, decreasing the power of the equal pay act
E) All of the above
Explanation / Answer
1. D Both a). and b). are correct. This is because hiring audits performed by the state provides the data on what the actual situation is in a country. Also, statistics that have been accumulated by the state helps one to determine whether there is discrimination prevalent in a country or not.
2. E . Both a). and b). are correct. Labour market discrimination does discourage the workers to develop their inbuilt skills because they do not have any economic incentive(jobs in this case) to do so.
It does reduce the GDP output because the people who are discriminated against might have some skills would help increase the general output of the country.
3. E). All of the above
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