1. Which of the following is correct ? An employer is prejudiced, prefers to hir
ID: 1186821 • Letter: 1
Question
1. Which of the following is correct? 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:
a) Income is a stock and wealth is a flow concept.
b) Both income and wealth are flow concepts.
c) Both income and wealth are stock concepts.
d) Income is a flow and wealth is a stock concept.
a) reverse discrimination.
b) the crowding model.
c) the taste-for-discrimination model.
d) statistical discrimination.
3. 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.
4.The crowding model is primarily concerned with explaining:
occupational discrimination.
human-capital discrimination.
the size of the discrimination coefficient.
why affirmative action is reverse discrimination.
a) reverse discrimination.
Explanation / Answer
1 d
2 c
3 a
4 a
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