LABOR ECON-CONNECT ACCESS
8th Edition
ISBN: 9781264604197
Author: BORJAS
Publisher: MCG
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Chapter 9, Problem 3P
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Identify the type of discrimination.
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"Discuss the Implications of Employer Discrimination for the Hiring Decisions of the Firm."
What steps are taken when the supply of employees is predicted to be greater than demand?
After hiring the third emplyee, John was able to produce 110 units instead of 80 units without the third employee. The price of each unit is $10. What is the Marginal Revenue Product of the third employee.
$800
$1100
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$1900
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- Give examples of possible employee benefitsarrow_forwardEconomic discrimination takes place when an employer pays workers the lowest wage possible. pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed. pays lower wages to workers who are not as productive as other workers. pays workers compensating wage differentials.arrow_forwardExplain the discrimination coefficient.arrow_forward
- Which of the following statements is not correct? a) Competitive markets tend to limit the impact of discrimination on wages. b) Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination. c) Some differences in earnings are attributable to discrimination based on race, sex, or other factors. d) Profit-maximizing behavior can reduce discriminatory wage differentials.arrow_forwardthe Equal Employment Opportunity Commission (EEOC): is a federal agency established by the Rehabilitation Act of 1968. publishes guidelines for the public sector to assist businesses in deciding what employment practices are lawful or unlawful. enforces civil rights in the workplace. investigates complaints filed by employers who believe they are victims of unlawful discrimination. does not have the right to file charge against an employer even if it believes that an unlawful discrimination has taken place.arrow_forwardI need help with the last 3 parts (not part A).arrow_forward
- Reframe the theory of employment discrimination in light of behavior over time data.arrow_forwardAccording to the Economics Policy Institute (Mishel and Wolfe, 2019) CEO pay has grown 940% since 1978 while the compensation of the average worker has only risen 12%. While you can easily find sources that provide statistics that conflict with these numbers, you would be hard pressed to find any credible source that refutes the idea that the rate of pay of CEO’s and other upper-level managers has not dramatically increased relative to an organization’s lower-level employees in just about any 10 or more year period over the past 60 years. In the world of Adam Smith, the “invisible hand” of the free market capitalistic model would address inequities/out of balances. Are the forces represented by the “invisible hand” working? Why or why not? Is there an ethical dimension to the discussion of upper-level manager compensation? Why or why not? How does (or does it?) levels of pay of upper management impact the rest of us commoners?arrow_forwardAn example of a policy that combats discrimination is: Equal employment opportunity legislation Affirmative action legislation Equal pay legislation Pay equity or equal value legislation All of the abovearrow_forward
- Assume firms differ in how much they dislike American workers. Suppose a firm has no distaste for Americans. In fact, it only hires American workers. According to our theory of employer discrimination, Question 1 options: The firm will be less profitable than other firms. The firm will have fewer employees. The firm will have higher costs. The firm will produce more output.arrow_forwardIf the price of a good increases, then in the market for the type of labor needed to produce this good, Group of answer choices employment will decrease. the labor supply will increase. the marginal product (MP) of labor will increase. the marginal revenue product (MRP) of labor will increasarrow_forward1) Employer discrimination implies that A) if the group discriminated against is small, there will be a wage differential in the market. B) some employers give up profits to avoid hiring one group. C) co-workers and customers prefer one group of workers over another. D) there will be no market wage differential. 2) Percentage goals in minority employment A) will not cause changes in the makeup of a company's workforce. B) can be met more quickly for companies that can maintain low quit rates. C) can always be met quickly if nondiscriminatory hiring is used. D) will take longer to achieve in industries with relatively lower turnover rates. 3) Comparable worth analysis in Minnesota found that A) jobs with higher measured worth received higher pay. B) jobs with higher measured worth received lower pay. C) a regression of measured worth versus pay yielded a horizontal line. D) measured worth of most jobs was completely unrelated to pay. 4) If workers in one group are discriminated against…arrow_forward
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