978-1259723223 Test Bank TBChap023 Part 3

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Di f f i c u l t y : 01 Easy

Learning Objective: 23–06 Identify the major components of the income-maintenance

program in the United States.

Test Bank: I

Topic:

The U.S. Income-Maintenance System

90.

The earned-income tax credit

91.

Which one of the following is not a cash transfer program?

92.

Which one of the following would increase income inequality as measured by official census

data and the quintile distribution?

93.

Which of the following would move the Lorenz curve closer to the diagonal?

94.

The TANF program

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program in the United States.

Test Bank: I

Topic:

The U.S. Income-Maintenance System

95.

The TANF program is designed to

96.

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program

has

97.

By December 2009, the recession that began in December 2007

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Blooms: Remember

Di f f i c u l t y : 01 Easy

Learning Objective: 23–06 Identify the major components of the income-maintenance

program in the United States.

Test Bank: I

Topic:

The U.S. Income-Maintenance System

98.

The Supplemental Nutrition Assistance Program (SNAP)

99.

African-American worker Jackson earns $30,000 per year; white worker Johnson earns

$40,000 per year. On the basis of this information, we can conclude that

100.

For an employer biased against African Americans, the discrimination coefficient d

101.

Which of the following employers is the most prejudiced? Employer

102.

In the taste-for-discrimination model,

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hiring decisions and wages.

Test Bank: I

Topic:

Economic Analysis of Discrimination

103.

Assume that all workers are equally productive, but the wage rate for men is $12, compared

to $9 for women. An employer who employs only male workers must

have a discrimination

coefficient of

104.

An employer whose discrimination coefficient is $4 will

105.

Suppose an employer is biased against African Americans. If his discrimination coefficient

is $2, the employer will

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wage differential is more than $2.

B.

randomly hire African-American and white workers if the actual African-American–white

wage differential is less than $2.

C.

hire only African Americans if the actual African-American–white wage differential is less

than $2.

D. hire only whites if the actual African-American–white wage differential is less than $2.

106.

If there is a widespread bias against African-American workers, an increase in the

collective discrimination coefficients of employers will

107.

In a labor market generally biased against Hispanics, a reduction in the collective

discrimination coefficients of employers will

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C. increase the Hispanic wage rate, increase Hispanic employment, and increase the actual

Hispanic-white wage ratio.

D. increase the Hispanic wage rate, reduce Hispanic employment, and increase the actual

Hispanic-white wage ratio.

108.

Refer to the diagram. Which of the following would be consistent with an increase in racial

prejudice against African Americans and thus an increase in the

discrimination coefficients of

employers, taken as a group?

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hiring decisions and wages.

Test Bank: I

Topic: Economic Analysis of Discrimination

Type: Graph

109.

Refer to the diagram. Which of the following would be consistent with a decrease in racial

prejudice against African Americans and thus a decrease in the

discrimination coefficients of

employers, taken as a group?

110.

In the taste-for-discrimination model,

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A.

a decline in discrimination will reduce the actual African-American–white wage ratio.

B.

an increase in collective discrimination coefficients of employers will reduce the demand for

African-American workers, decrease the African-American wage, and

increase African–

American employment.

C.

firms that discriminate will have lower costs than firms that do not discriminate.

D. competitive forces will tend to reduce discrimination in the very long run.

111.

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

112.

An employer is prejudiced, prefers to hire white rather than Hispanic workers, and is

willing to pay higher wages to obtain white workers. This illustrates

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Blooms: Understand

Dif fi cul ty: 02 Medium

Learning Objective: 23–07 Discuss labor market discrimination and how it might affect

hiring decisions and wages.

Test Bank: I

Topic:

Economic Analysis of Discrimination

113.

Statistical discrimination refers to

114.

Statistical discrimination

115.

Insurance companies require male drivers under age 25 to pay higher insurance rates than

female drivers under age 25. Craig Raymond, however, is a safer driver

than the average female

driver under age 25. Craig’s higher insurance rate reflects

116.

Statistical discrimination

117.

Which of the following is an example of statistical discrimination?

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Blooms: Understand

Dif fi cul ty: 02 Medium

Learning Objective: 23–07 Discuss labor market discrimination and how it might affect

hiring decisions and wages.

Test Bank: I

Topic:

Economic Analysis of Discrimination

118.

Suppose Gigantic Health Cooperative doesn‘t hire Mandy Morrison solely because she is a

graduate of a particular foreign medical school, which is not known for

the high quality of its

graduates. Yet Mandy is actually more qualified than the average graduate of American medical

schools. This is an example of

119.

Suppose Copernicus Corporation hires Damon Danielson rather than Elmer Ellison, simply

because Damon is a graduate of an Ivy League school, while Elmer is a

graduate of a small

public university. Elmer is actually more qualified than Damon. This is an example of

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Topic: Economic Analysis of Discrimination

120.

A particular woman is denied on-the-job training because women on average are more

likely to drop out of the workforce than men. This illustrates

121.

The crowding model of discrimination suggests that

122.

The crowding of women and minorities into a restricted number of occupations

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D. will increase the size of the domestic output but make its distribution less equal.

123.

Minority workers are underrepresented and have less access to certain high-paying

occupations. This illustrates

124.

The crowding model is primarily concerned with explaining

125.

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the

economy has 3 occupations, X, Y, and Z, each having identical

demand curves for labor; (3)

male and female workers are homogeneous with respect to their labor-market capabilities; (4)

women are discriminated against by

being excluded from occupations X and Y and are confined

to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to

maximize their

earnings.

Refer to the diagram and list of assumptions. Under these circumstances 9 million women will be

employed in occupation Z,

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Topic: Economic Analysis of Discrimination

Type: Graph

126.

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the

economy has 3 occupations, X, Y, and Z, each having identical

demand curves for labor; (3)

male and female workers are homogeneous with respect to their labor-market capabilities; (4)

women are discriminated against by

being excluded from occupations X and Y and are confined

to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to

maximize their

earnings.

Refer to the diagram and list of assumptions. With women confined to occupation Z and men free

to choose occupations, how will this affect the wages paid?

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Learning Objective: 23–07 Discuss labor market discrimination and how it might affect

hiring decisions and wages.

Test Bank: I

Topic:

Economic Analysis of Discrimination

Type: Graph

127.

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the

economy has 3 occupations, X, Y, and Z, each having identical

demand curves for labor; (3)

male and female workers are homogeneous with respect to their labor-market capabilities; (4)

women are discriminated against by

being excluded from occupations X and Y and are confined

to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to

maximize their

earnings.

Refer to the diagram and list of assumptions. If discrimination is ended,

128.

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the

economy has 3 occupations, X, Y, and Z, each having identical

demand curves for labor; (3)

male and female workers are homogeneous with respect to their labor-market capabilities; (4)

women are discriminated against by

being excluded from occupations X and Y and are confined

to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to

maximize their

earnings.

Refer to the diagram and list of assumptions. If discrimination is ended, women

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C.

and men will both receive a wage rate of $6.

D.

will receive a wage rate of $4 and men will receive a wage rate of $5.

129.

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the

economy has 3 occupations, X, Y, and Z, each having identical

demand curves for labor; (3)

male and female workers are homogeneous with respect to their labor-market capabilities; (4)

women are discriminated against by

being excluded from occupations X and Y and are confined

to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to

maximize their

earnings.

Refer to the diagram and list of assumptions. The elimination of gender discrimination