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: A. The wage of whites equals the value of the marginal product of labor. B. The wage of blacks equals the value wage of whites. C. Total costs equal total profits. D. The wage of blacks is greater than the wage of whites. E. The wage of blacks is less than the wage of whites. Ans: B 3. Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why? A. Customers will refuse to purchase from a discriminating employer. B. Workers will refuse to work for a discriminating employer. C. The government mandates that the employer not act on his or her desire to discriminate. D. Discrimination imposes an additional cost on the employer; and high-cost firms are eventually driven out of a competitive output market. E. A competitive output market requires all workers to be paid the same wage. Ans: D 4. Which of the following is not true concerning employee discrimination? A. Employers have no reason to employ a segregated workforce if there is employee discrimination. B. Employee discrimination does not affect the profitability of firms. C. Discriminating employees act as if their wage is less than it actually is if they are employed by a firm that has an integrated workforce. D. Workers accept the utility-maximizing job offer even when there is employee discrimination. E. Employee discrimination will not produce a wage differential between equally skilled black and white workers. Ans: A 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? A.
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labor Chap_009 - TEST BANK Robert J. Lemke Lake Forest...

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