labor Chap_009 - TEST BANK Robert J Lemke Lake Forest...

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TEST BANK Robert J. Lemke Lake Forest College Fall 2008 Labor Economics 5 th Edition George Borjas Chapter Nine 1. The perceived cost of hiring a black worker for an employer who is prejudiced against blacks will exceed what? A. The cost of hiring whites. B. The wage of whites. C. The wage of blacks. D. The white-black wage gap. E. Total profit. Ans: C 2. Profit-maximizing firms that do not discriminate will hire workers up to the point where: 3. Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why? 4. Which of the following is not true concerning employee discrimination? 5. Suppose the marginal revenue product is $20 per hour regardless of race. An employer who faces an hourly wage of $14 per black worker and $17 per white worker decides to hire all white workers. What kind of 1
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discrimination is this? A. Employee discrimination. B. Consumer discrimination. C. Employer discrimination. D. Statistical discrimination. E. None of the above. Ans: C 6. The Human Resources department at a firm has two job candidates for one position. Both candidates went to the same college, took the same classes and have the same ranking. They both performed well in the interview and said that they see the job as a long-term position. One applicant is male and one is female. Historically within the firm, women have a shorter average stay within the firm. Because of this, the firm fills the position with the male candidate. What kind of discrimination is this?
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