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Multiple Choice Quiz
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1

The source(s) of discrimination in Gary Becker's taste for discrimination model is (are):
A)the employer.
B)the employee.
C)the customer.
D)all of the above.
E)none of the above.
2

In Gary Becker's model of discrimination, a taste for discrimination on the part of an employer against black workers means that the employer perceives that:
A)black workers are less productive than white workers.
B)the wage of black workers is higher than their true wage.
C)black workers have higher pecuniary and nonpecuniary costs than white workers.
D)the wage of white worker is lower than their true wage.
3

The discrimination coefficient is the perceived:
A)wage premium if the employee is black.
B)wage discount if the employee is white.
C)productivity discount if the employee is black.
D)productivity premium if the employee is white.
4

An employer who has a taste for discrimination against black workers is predicted:
A)to have a segregated workforce.
B)to hire only black workers if the owner's taste for discrimination is less than the market's discount for hiring black workers.
C)both (A) and (B).
D)neither (A) nor (B).
5

In a competitive labor market, employers with a taste for discrimination:
A)hire more than the optimal amount of workers if they have an "all-white" workforce.
B)hire less than the optimal amount of workers if they have an "all-black" workforce.
C)both (A) and (B).
D)neither (A) nor (B).
6

A policy implication of the Employer Discrimination model is:
A)discrimination cannot persist in a competitive market.
B)competition among firms harms minority workers by bidding down minority wages to insure profitability.
C)active intervention in the labor market is necessary in order for wage equality between racial groups to be achieved.
D)both (B) and (C).
7

In equilibrium, the relative black wage (wb/ww):
A)will always be less than one if some employers have a taste for discrimination.
B)is determined by the supply and demand for black workers.
C)declines as the supply of black workers increases.
D)both (B) and (C).
E)all of the above.
8

The employer discrimination model predicts that if male employees have a taste for discrimination against female employees:
A)male employees will receive a wage premium.
B)firms will be segregated by gender.
C)male employees will earn more than female employees.
D)both (A) and (B).
E)all of the above.
9

The employer discrimination model predicts that if women prefer female gynecologists, a male gynecologist:
A)will earn less than a comparably-skilled female gynecologist.
B)will be more qualified than a comparably paid female gynecologist.
C)will earn a lower rate of return on his human capital investment than a comparably skilled female gynecologist.
D)all of the above.
E)none of the above.
10

Customer discrimination:
A)is predicted to be driven from the market by firms maximizing profits.
B)leads to women and minorities having a lower value of marginal product even when they are equally productive.
C)leads to a higher rate of return on human capital for women and minorities because they investment less in training.
D)all of the above.
E)none of the above.







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