Question 1: Economic discrimination puts the economy inside its production possi

Question

Question 1:

Economic discrimination puts the economy inside its production possibilities curve because discrimination:

Question 2:

Economic discrimination:

Question 3:

Labor market discrimination creates a:

Question 4:

An increase in the collective discrimination coefficients of employers will:

Question 5:

A reduction in the collective discrimination coefficients of employers will:

Question 6:

In the taste-for-discrimination model:

Question 7:

Which of the following employers is the most prejudiced? Employer:

Question 8:

An implication of the taste-for-discrimination model is that:

Question 9:

An employer is prejudiced, prefers to hire white rather than African-American workers, and is willing to pay higher wages to obtain white workers. This illustrates:

Question 10:

Empirical studies generally find that the estimated discrimination coefficient is larger in southern versus northern states. True or False: presuming that the wage differential is due to employer discrimination, this necessarily implies that there are more discriminating employers in the South than there are in the North.

Explanation / Answer

1) Solution: arbitrarily blocks women and certain minorities from higher-productivity, higher wage jobs and thus keep the economy from producing its maximum output

Explanation: Economic discrimination results the economy inside its production possibilities curve because restrict the economy from producing its maximum output

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2) Solution: places the economy at some point inside of its production possibilities curve

Explanation: Economic discrimination refers to discrimination based on economic factors within the commerce area

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3) Solution: redistribution of a smaller domestic output.

Explanation: The discrimination in labor market results to a redistribution of a smaller domestic output.

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4) Solution: reduce the African-American wage rate, decrease African-American employment, and lower the actual African-American-white wage ratio

Explanation: An increase in collective discrimination coefficients of employers decreases the wage rate, reduces employment, and reduces the actual wage ratio

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5) Solution: increase the African-American wage rate, increase African-American employment, and increase the actual African-American-white wage ratio.

Explanation: An increase in collective discrimination coefficients of employers increases the wage rate, increases employment, and increases the actual wage ratio

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6) Solution: white employers behave as if employing African-American workers adds to costs.

Explanation: In the taste-for-discrimination model discriminatory employers behave in an approach that employing non-preferred-race workers is adding to costs.

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7) Which of the following employers is the most prejudiced? Employer:

Solution: D whose d is $6.

Explanation: D has the highest amount

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8) Solution: other things equal, non-discriminating firms will have lower production costs than discriminating firms.

Explanation: Taste-for-discrimination model argues that employers experience negative effects due to the employment of hiring minority workers thus non-discriminating firms will have lower production costs compared to discriminating firms.

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9) Solution: the taste-for-discrimination model.

Explanation: Taste-for-discrimination model argues that employers experience negative effects due to the employment of hiring minority workers

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