ucdenver ECOn3100 final exam 2016

Question 1

2 / 2 pts

An indifference curve shows all:

possible equilibrium positions on an indifference map.

equilibrium combinations of two products that are obtainable with a given money income.

combinations of two products yielding the same total utility to a consumer.

possible combinations of two products that a consumer can purchase, given her income and the prices of the products.

Question 2

2 / 2 pts

Which of the following is a direct implication of the view that childbearing is an economic decision?

People will not have additional children unless they can earn a profit from doing so.

Social factors have no effect on childbearing decisions.

Compulsory education will increase fertility because educated children have the potential to earn higher salaries.

Fertility should fall with improved opportunities for women to work in jobs outside the home.

Question 3

2 / 2 pts

Lets draw Indifference curves with value of leisure on the x-axis and income on the y-axis. This I-curve will have a negative slope

because people are willing to give up income to obtain more leisure and vice versa

only if a person likes leisure more than income.

because the I-curves cannot cross one another

only if a person likes income more than leisure.

Question 4

2 / 2 pts

Which of the following Gini ratios indicates the highest degree of income inequality?

0.78

0.65

0.29

0.42

Question 5

2 / 2 pts

The Lorenz curve:

plots graphically the poverty rate over time.

is located closer to the diagonal today than it was immediately after the Second World War.

plots graphically the distribution of income.

is located farther from the diagonal when income is defined to include the value of noncash transfers.

Question 6

2 / 2 pts

Employees tend to obtain on-the-job training

at an increasing rate during their careers.

all at once, early in their careers.

over a number of years, at a declining rate over their careers.

Question 7

2 / 2 pts

The main goal of affirmative action programs is to

enforce racial segregation laws

promote economic gains for minorities and women

secure equal voting rights for African Americans

provide affordable child care

Question 8

2 / 2 pts

Students who attend college because they enjoy the lifestyle and freedom are treating college as

an investment good

as a "pass" time before joining the real world

a cheap means for acquiring health benefits

a consumption good

Question 9

2 / 2 pts

Lainey (age 19) would be more likely to obtain a college education if

her discount rate was lower.

she was older

she expected to never work (trust fund baby!)

she was pregnant

Question 10

2 / 2 pts

The concept of investment in human capital indicates that:

union workers are better educated and more productive than nonunion workers.

expenditures on education can be explained in essentially the same way as expenditures on machinery and equipment.

worker productivity correlates negatively with annual earnings.

the level of education is unrelated to the level of one's income.

Question 11

2 / 2 pts

Consider two identical individuals who have received equal amounts of on-the-job training from a1 firm but the OJT of Person One is general while that of Person Two is specific. Given this, human capital theory predicts:

after training, the wage of Person One will exceed that of Person Two

aah this is a hard question.:) RIGHT after training, a person who has recd specific training will have a lower wage rate than someone who received general training. The person with specific training will have a higher wage than they had before but their wage will be lower than the wage of someone with general training. The reason behind is that during training the person receiving specific training will be earning a higher wage that the second person. So over time, the person with specific training, would have received more money than the one with general training.

after training, Person One will be less likely to quit the firm than Person Two.

during training, Person One will receive a higher wage than Person Two.

Question 12

2 / 2 pts

Human capital investment refers to spending on education and worker training.

True

False

Question 13

2 / 2 pts

The program that promotes preference in hiring for African Americans and other minorities to correct past injustices is known as

Title IX

open admissions

affirmative action

Head Start

Question 14

0 / 2 pts

An employer whose discrimination coefficient is $4 will:

refuse to hire African-Americans at any wage rate.

hire only African-Americans if the actual African-American-white wage differential is $3 an hour.

hire only whites if the actual African-American-white wage differential is $3 an hour.

hire only whites if the African-American-white wage differential is $4.

Question 15

2 / 2 pts

Statistical discrimination refers to:

the crowding of women or minorities into low-paying occupations.

significant differences in average levels of earnings by gender, race, and ethnicity, after accounting for nondiscriminatory factors.

making individual hiring decisions on the basis of the characteristics of the group to which a person belongs, rather than on his or her personal characteristics and productivity.

the 50-percent unexplained residual in studies that try to account for wage differences by gender, race, and ethnic origin.

Question 16

2 / 2 pts

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:

monopoly power.

statistical discrimination.

the insurance firm's taste for discrimination.

human-capital discrimination.

Question 17

2 / 2 pts

Statistical discrimination:

can persist in the long run if differences in average characteristics among groups continue.

will tend to diminish in the long run, because nondiscriminating firms will drive out discriminating firms.

requires that employers have discrimination coefficients greater than zero.

is also known as occupational segregation.

Question 18

2 / 2 pts

Which of the following is an example of statistical discrimination?

An employer hires only white workers even though there are otherwise identical African-American workers available at lower pay.

Women students in college business schools are overrepresented in human resource management courses and underrepresented in finance courses.

A young woman who plans to work for only five to seven years after graduating college decides that getting an advanced degree "just won't pay off."

A firm hires a man rather than a woman for a specific job because, on average, women have higher rates of absenteeism than do men.

Question 19

2 / 2 pts

Suppose that wages for African-American and white workers of equal productivity are $12 and $13 an hour, respectively. If a particular firm hires only whites, its discrimination coefficient must be:

greater than $1.

less than $1.

zero.

infinity.

Question 20

2 / 2 pts

A study finds that handsome people make more than ugly people in occupations where workers interact with customers. This supports which of these models of discrimination

Employer

Customer

Employee

Statitical

Question 21

2 / 2 pts

In the taste-for-discrimination model:

white employers behave as if employing African-American workers adds to costs.

individual workers are judged by the characteristics of the groups to which they belong.

prejudiced white employers will never hire African-American workers.

women and minorities are confined to a limited number of occupations.

Question 22

2 / 2 pts

If an insurance company notes that Hispanic drivers are less likely to get in an accident and when they do the accidents are less costly than those of white drivers then if the insurance companies decided to use race as a factor in setting premiums by charging whites more than Hispanics this would be

Statistical discrimination but would also be illegal

Statistical discrimination but would be legal

logical discrimination and its legality would have to be settled in Insurance Court.

stupid because it is not consistent with profit maximization.

Question 23

2 / 2 pts

Suppose the Justice Department commissioned a study to uncover discrimination against Hispanics in the admissions process of a university whereby fictitious yet academically identical applications were sent to a university with student names and high schools that were suggestive of the students' ethnic backgrounds (Martinez and Jimenez from high schools in East Los Angeles and Smith and Jones from high schools in Beverly Hills). This would be an example of detecting discrimination through the use of

regression techniques

auditing techniques

nonsensical techniques

random techniques

Question 24

2 / 2 pts

Many economists have argued that once legal mechanisms of discrimination are removed

competition among employers for good employees will equalize wages between men and women

competition among workers for jobs will increase the gap between what men and women make.

competition among employers will increase the gap between what men and women make.

none of the above

Question 25

2 / 2 pts

Economists note that discrimination will not vanish if

firms have market power and are making sustainable economic profits and choose to "spend" some of that economic profit satisfying their bigotry.

employers have customers who are bigots so that in order to maximize profits firms may feel the need to ignore to their customer's bigotry.

the gap in pay is substantial.

none of the above as discrimnation will always vanish.

Question 26

2 / 2 pts

The residual method overstates the true amount of the wage gap due to labor market discrimination.

True

False

Uncertain

There are reasons why the residual method may either overstate or understate the true amount of the wage gap due to discrimination.

Question 27

Not yet graded / 2 pts

Affirmative action also affects the majority group. This is called /leads to _____ Discrimination

Question 28

2 / 2 pts

A study finds that handsome people make more than ugly people in occupations where workers interact with customers. This supports which of these models of discrimination:

employer discrimination

customer discrimination

employee discrimination

statistical discrimination

Question 29

2 / 2 pts

Institutional discrimination occurs when women or minorities are systematically disadvantaged by the rules and incentives of organizations and institutions such as firms, markets and the government.

True

False

Question 30

2 / 2 pts

Segregated housing for African Americans

increases their job opportunities.

is a matter of their own choice to live together

is no longer a problem in early twenty-first-century American society.

reduces their opportunity to attend good schools.

Question 31

2 / 2 pts

Which of the following conditions has/have compounded the legacy of economic discrimination?

the decline in industrial union power and membership at a time when they have become fully open to blacks

the progressive beliefs that the government should try to help solve the economic problems of African Americans

C) the increase in high-paying blue-collar jobs

D) jobs moving from the suburbs back to the cities

Question 32

2 / 2 pts

Which of the following does NOT explain the present status of blacks in American society?

their identifiability as targets of discrimination

their victimization by both institutionalized and informal discrimination

the belief that they are not ready to compete in society

negative beliefs and social meanings associated with blackness in American society

Question 33

0 / 2 pts

Evidence of over-representation of women in low-paying jobs constitutes evidence of employer discrimination

You Answered

True

False

Question 34

2 / 2 pts

A study finds that handsome people make more than ugly people in occupations where workers interact with customers. This supports which of these models of discrimination:

employer discrimination

customer discrimination

employee discrimination

statistical discrimination

Question 35

2 / 2 pts

Federal antidiscrimination programs appear to

have made no difference in raising relative earnings of black workers

have made no difference in raising relative earnings of black workers

have helped to raise relative earnings of black workers.

have hurt the relative earnings of black workers.

Question 36

2 / 2 pts

Racial discrimination in the world of work is on the increase in the aftermath of the global economic downturn.

True

False

Question 37

0 / 2 pts

Globally, ethnic minorities

face discrimination in the labour market and limited access to education and health care even when the economy is going well And in downturns those problems are exacerbated.

face discrimination in the labour market and limited access to education and health care even when the economy is going well And in downturns those problems are lot less.

like migrant workers, become less vulnerable to scapegoating during downturns, but are easy targets for the racist rhetoric of political extremists

like migrant workers, become more vulnerable to scapegoating during downturns, but are hard targets for the racist rhetoric of political extremists

Question 38

2 / 2 pts

According to the Global Gender Gap Report 2014 which country continues to be at the top of the overall rankings in The Global Gender Gap Index?

USA

Norway

Iceland

Canada

Question 39

2 / 2 pts

According to the World Values Survey the least racially tolerant countries are

India and Jordan.

Anglo and Latin countries

in Western Europe.

Australia and New Zealand

Question 40

0 / 2 pts

If one is looking at residential choice, skills acquisition, and production in a city composed of several communities,

equilibrium segregation can cause entire 'areas" to drop out of the labor force

equilibrium is that of no residential segregation

equilbrium segregation causes self-segregation over time.

there are no local externalities in human capital investment