Economics Special Topic 9—Earnings Differences Between Men and Women
MULTIPLE CHOICE
1. Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor
force participation rate of women has been ____ during this same period.
a.
rising; declining
b.
rising; increasing
c.
falling; increasing
d.
falling; declining
2. Which of the following is true?
a.
Employers who discriminate against women will have lower costs than rival firms that
hire employees strictly on the basis of merit (productivity).
b.
If employers can hire equally productive female employees at a lower wage than males,
the profit motive gives them a strong incentive to do so.
c.
The female/male earnings ratio is higher for persons who are married than for those who
remain single.
d.
Both a and c are true.
3. When female/male earnings differentials are adjusted for age, education, language, and locational
characteristics, the
a.
differential between the earnings of males and those of females increases substantially.
b.
differential between the earnings of males and those of females does not change much.
c.
corrected earnings of males are equal to those of similar females.
d.
corrected earnings of females are greater than those of similar males.
4. Which of the following is true about those graduating with college degrees?
a.
The proportion of college degrees earned by women has been declining in recent decades.
b.
The proportion of college degrees earned by women has been virtually constant during the
last four decades.
c.
In 2013, only about 43 percent of those graduating from college were women.
d.
In 2013, only about 43 percent of those graduating from college were men.
5. Which of the following factors are likely to lead to an increase in the female/male earnings ratio in the
future?
a.
As the labor force participation of women increases, their years of work experience will
become more similar to men.
b.
In recent years, a higher proportion of women have been preparing for careers in the
professions.
c.
As the proportion of families headed by a female parent increases, the average hours
worked per week of female employees will decline.
d.
Both a and b are correct.
6. Between 1960 and 1980, the female/male annual earnings ratio of full-time workers ____. Between
1980 and 2011, the female/male annual earnings ratio of full-time workers ____.
a.
changed very little; fell
b.
changed very little; rose
c.
fell; changed very little
d.
rose; changed very little
7. Between 1960 and 1980, the labor force participation rate of women ____. Between 1980 and 2011,
the labor force participation rate of women ____.
a.
fell; fell
b.
rose; rose
c.
fell; rose
d.
rose; fell
8. Which of the following is true?
a.
The earnings differential between men and women who never married is considerably
smaller than the differential between married men and married women.
b.
After adjusting for education, age, language, and location, the earnings of women are
almost identical with the earnings of men.
c.
Between 1980 and 2000, the female/male annual earnings ratio of full-time workers was
virtually unchanged.
d.
The hourly earnings of women were approximately 60 percent of their male counterparts
in 2009.
9. Which of the following would constitute the strongest evidence of employment discrimination against
female employees?
a.
The average wage of female workers is lower than the average wage of males.
b.
The average wage of female employees is lower than the average wage of males with
similar productive characteristics.
c.
The mean number of years of schooling of female workers is lower than that of males.
d.
The average hours worked by female employees is less than the average hours worked by
males.
10. If a firm refuses to hire any females due to a personal prejudice, its profits will
a.
increase markedly.
b.
decrease.
c.
not be affected.
d.
increase slightly.
11. Women earn less on average than men. Which of the following would be the logical conclusion?
a.
Women must be the victim of employment discrimination.
b.
Women must be less productive.
c.
Men must be more highly motivated and materialistic.
d.
Without consideration of preferences and productivity factors, differences in unadjusted
mean earnings do not necessarily reflect employment discrimination.
12. The earnings difference between men who have never been married and women is
a.
significantly less than the earnings difference between married men and women.
b.
about the same as the earnings difference between married men and women.
c.
significantly more than the earnings difference between married men and women.
d.
modestly more than the earnings difference between married men and women.
13. When employment discrimination results from the personal prejudices of employers, economic theory
suggests that
a.
it is costless for employers to discriminate against groups they do not like.
b.
the wages of employees who are discriminated against will rise.
c.
an employer who discriminates will experience higher costs.
d.
discrimination by an employer will reduce production costs since the employer can pay
lower wages.
14. When employment discrimination results from the personal prejudices of employers, economic theory
suggests that
a.
competitive forces will tend to reduce discrimination.
b.
the wages of employees who are discriminated against will rise.
c.
an employer who discriminates will have the same costs as those who do not discriminate.
d.
discrimination by an employer will reduce production costs since the employer can pay
lower wages.
15. If an employer could really hire women who were willing and able to do the same work as men for 20
percent less, profit-seeking employers would have
a.
a strong incentive to hire more women, which would shrink this differential.
b.
little incentive to hire women, since hiring men would still be more profitable.
c.
a strong incentive to hire fewer women, and this would reduce the wage gap between men
and women.
d.
a strong incentive to hire fewer women, which would expand the wage gap between men
and women to an even higher level.
16. Which of the following is true?
a.
Employers who discriminate against women will have lower costs than rival firms that
hire employees strictly on the basis of merit (productivity).
b.
If employers can hire equally productive female employees at a lower wage than males,
the profit motive gives them a strong incentive to do so.
c.
The female/male earnings ratio is higher for persons who are married than for those who
remain single.
d.
Both a and c are true.
17. Since the 1970s, the percentage of women preparing for careers in professions has been ____, while
the female/male earnings ratio has been ____ during this same period.
a.
rising; declining
b.
rising; increasing
c.
falling; increasing
d.
falling; declining
18. Which of the following is true?
a.
Due to anti-employment discrimination legislation that was passed in the early 1960s,
there was a large increase in the earnings of women relative to men in the 1960s and
1970s.
b.
The female/male earnings ratio for full-time workers rose substantially between 1980 and
2010.
c.
The number of women preparing for careers as professionals has declined during the last
two decades.
d.
In 2010, only about 42 percent of those completing college degrees were women.
19. During the last two decades, the number of women preparing for careers as professionals has ____,
and the proportion of those completing college degrees has ____.
a.
increased; decreased
b.
increased; increased
c.
decreased; decreased
d.
decreased; increased
20. In 1961, ____ percent of college degrees were earned by women.
a.
19
b.
29
c.
39
d.
51
21. In 2013, ____ percent of college degrees were earned by women.
a.
27
b.
37
c.
47
d.
57
22. The share of college degrees earned by women was ____ in 2013 compared to ____ in 1961.
a.
50 percent; 50 percent
b.
47 percent; 30 percent
c.
57 percent; 39 percent
d.
51 percent; 48 percent
23. Which of the following is true?
a.
The proportion of college degrees earned by women has been virtually unchanged during
the last four decades.
b.
There was a substantial increase in the earnings of women relative to men in the 1960s and
1970s following the passage of legislation prohibiting employment discrimination against
women.
c.
The number of women preparing for careers as professionals has declined during the last
two decades.
d.
In 2010, 57 percent of those completing college degrees were women.
24. During the last two or three decades, the educational and career choices of women have become
a.
more like those of men, and the earnings of women have declined relative to those of men.
b.
more like those of men, and the earnings of women have increased relative to those of
men.
c.
less like those of men, and the earnings of women have increased relative to those of men.
d.
less like those of men, and the earnings of women have declined relative to those of men.
25. When employment discrimination results from the personal prejudices of employers, economic theory
suggests that
a.
employers who discriminate will have lower production costs.
b.
the wages of employees who are discriminated against will rise.
c.
employers who discriminate will have the same production costs as those who do not
discriminate.
d.
employers who discriminate will have lower profits.
26. As the proportion of women preparing for careers as professionals increases,
a.
their years of work experience will become more similar to men.
b.
the female/male earnings ratio will rise.
c.
their level of human capital will become more similar to men.
d.
all of the above.
27. Women earn less on average than men. Which of the following would be the logical conclusion?
a.
Women must be the victim of employment discrimination.
b.
Women must be less productive.
c.
Men must be more highly motivated and materialistic.
d.
Without consideration of preferences and productivity factors, differences in unadjusted
mean earnings do not necessarily reflect employment discrimination.
28. Which of the following is true?
a.
Employers who discriminate against women will have lower costs than rival firms that
hire employees strictly on the basis of merit (productivity).
b.
On average, the number of hours worked per year by women in the labor force is greater
than the hours worked by men in the labor force.
c.
The female/male earnings ratio is substantially higher for never married persons than for
those married with a spouse present.
d.
As the proportion of women preparing for careers as professionals has increased in recent
decades, the earnings of women have declined relative to those for men.
29. The F/M earnings ratio for full-time workers
a.
has been steadily declining.
b.
has been roughly constant since 1980.
c.
has increased significantly since 1980.
d.
increased until 1980, but it has declined steadily during the last two decades.
30. Traditionally, men have been more willing to accept jobs that
a.
required continuous employment in the labor force.
b.
require relocation if necessary to get a higher paying job.
c.
have long working hours.
d.
All of the above are correct.
31. Which of the following is true?
a.
Due to anti-employment discrimination legislation that was passed in the early 1960s,
there was a large increase in the earnings of women relative to men in the 1960s and
1970s.
b.
The female/male earnings ratio for full-time workers has been virtually constant since
1980.
c.
The number of women preparing for careers as professionals has increased substantially
since the 1980s.
d.
In recent years only about 40 percent of those completing college degrees were women.
32. Why is it NOT surprising that men make up the minority of college graduates?
a.
Because of discrimination against women, men are able to get good jobs with only a high
school degree.
b.
Men are smarter than women and they do not need a higher education to be attractive to
employers.
c.
Given their greater physical strength, many men accept high-paying but physically
demanding jobs instead of going to college.
d.
Many men decide to pursue jobs in professional sports and this significantly reduces the
number of males who go to college.
33. In 1964 civil rights legislation was passed
a.
that made it illegal for women to make less than the minimum wage.
b.
that created the No Woman Left Behind Commission.
c.
prohibiting employers from discriminating based on race and gender.
d.
requiring fields traditionally dominated by male workers to hire more female candidates.
34. In the years ahead we can expect the F/M earnings ratio to
a.
remain constant.
b.
continue to increase.
c.
continue to increase until 2020, when the ‘baby boom” generation retires” and then level
off.
d.
decline.
ESSAY
35. “If it were not for employment discrimination against women, the average earnings of men and women
would be equal.” Is this statement true or false?
36. Evaluate the following: “Employers who discriminate against women will have lower costs than rival
firms that hire employees strictly on the basis of merit (productivity).”
