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Gary Becker's controversial economics of discrimination concludes that
 
a. price discrimination benefits monopolies.
b. labor discrimination in hiring results in more efficient allocations of production.
c. price discrimination harms monopolies, which refutes over two centuries of economic theory.
d. labor discrimination harms firms that practice it due to increased labor costs.
 
 

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Raushan Raj
Raushan RajLv8
5 Oct 2020

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Related questions

Question 1:

Economic discrimination puts the economy inside its production possibilities curve because discrimination:

promotes present consumption rather than production of capital goods.
often causes inflation, which reduces the nation's real output.
redistributes income from low-paid to high-paid persons.
arbitrarily blocks women and certain minorities from higher-productivity, higher wage jobs and thus keeps the economy from producing its maximum output.

Question 2:

Economic discrimination:

affects the distribution of domestic output and income, but not its total size.
places the economy at some point inside of its production possibilities curve.
affects the total size of domestic output and income, but not its distribution.
is shown as some point outside of an economy's production possibilities curve.

Question 3:

Labor market discrimination creates a:

larger domestic output but no redistribution.
redistribution of a smaller domestic output.
redistribution of a larger domestic output.
smaller domestic output but no redistribution.

Question 4:

An increase in the collective discrimination coefficients of employers will:

reduce the African-American wage rate, increase African-American employment, and lower the actual African-American-white wage ratio.
reduce the African-American wage rate, decrease African-American employment, and lower the actual African-American-white wage ratio.
increase the African-American wage rate, reduce African-American employment, and increase the actual African-American-white wage ratio.
increase the African-American wage rate, increase African-American employment, and increase the actual African-American-white wage ratio.

Question 5:

A reduction in the collective discrimination coefficients of employers will:

reduce the African-American wage rate, increase African-American employment, and lower the actual African-American-white wage ratio.
reduce the African-American wage rate, decrease African-American employment, and lower the actual African-American-white wage ratio.
increase the African-American wage rate, reduce African-American employment, and increase the actual African-American-white wage ratio.
increase the African-American wage rate, increase African-American employment, and increase the actual African-American-white wage ratio.

Question 6:

In the taste-for-discrimination model:

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

Question 7:

Which of the following employers is the most prejudiced? Employer:

C whose d is $4.
A whose d is $0.
D whose d is $6.
B whose d is $2.

Question 8:

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

other things equal, nondiscriminating firms will have lower production costs than discriminating firms.
discrimination will move a firm along its declining average total cost curve.
discrimination can lower a firm's production costs.
other things equal, discriminating firms will have lower production costs than nondiscriminating firms.

Question 9:

An employer is prejudiced, prefers to hire white rather than African-American workers, and is willing to pay higher wages to obtain white workers. This illustrates:

the crowding model.
statistical discrimination.
the taste-for-discrimination model.
reverse discrimination.

Question 10:

Empirical studies generally find that the estimated discrimination coefficient is larger in southern versus northern states. True or False: presuming that the wage differential is due to employer discrimination, this necessarily implies that there are more discriminating employers in the South than there are in the North.

1. Which of the following allows a competitive firm to exercise monopoly power?

a. Control over some significant factors of production.

b. Production of a homogenous commodity.

c. Always maximizing profit.

d. Increasing industry-wide average costs

 

2. Which of the following statements is true about monopolies?

a. Monopolies always earn economic profits.

b. If the price falls below the minimum AVC, the monopolist shuts down its plant.

 

3. If a monopolist is practicing third-degree price discrimination:

a. Customers with lower elasticities of demand will be charged the same price as customers with higher elasticities of demand.

b. Customers with lower elasticities of demand will be charged lower prices than customers with higher elasticities of demand.

c. It must allow arbitrage to occur.

d. Customers with lower elasticities of demand will be charged higher prices than customers with higher elasticities.

 

4. Economist Gordon Tullock suggests that monopolists may use up their ______________ to engage in rent-seeking behaviour.

a. Marginal revenue

b. Deadweight loss

c. Economic profits

d. Marginal costs

Managers of a monopoly under rate of return regulation have an incentive to


a. underestimate the firm's costs.

b. exaggerate the firm's costs.

c. minimize the monopoly's deadweight loss.

d. exaggerate the firm's profit.

e. earn zero economic profit.


Which of the following is correct?
i. All linear demand curves have a constant slope and a constant price elasticity of demand.
ii. The price elasticity of demand changes while moving along a downward-sloping linear demand curve.
iii. The magnitude of the slope of all linear demand curves is equal to the price elasticity of demand.


a. iii only.

b. ii only.

c. i, ii, and iii.

d. i only.

e. i and ii.


________ natural monopolies is a commonly used, potential solution to the problems presented by natural monopolies.


a. Giving incentives to firms to become

b. Regulating

c. Breaking up firms that are

d. Outlawing price discrimination by

e. Refusing to grant patents to


In the short run, a perfectly competitive firm


a. must suffer an economic loss.

b. must earn an economic profit.

c. might make an economic profit, incur an economic loss, or make a normal profit.

d. must make either an economic profit or a normal profit.

e. must earn a normal profit.

To determine if a market is an oligopoly, we need to determine if


a. cartels are legal in their market.

b. the firms are so few that they recognize their mutual interdependencies.

c. the firms make identical or differentiated products.

d. there are many firms in the market.

e. the market's HHI is less than 900.


Increasing marginal returns to labor


a. occur only when there are increasing marginal returns to capital.

b. are the result of specialization and division of labor in the production process.

c. describe the portion of a total product curve where the marginal product is negative.

d. mean that two workers produce less than twice the output of one worker.

e. occur when a particularly efficient worker is employed.

The return to entrepreneurship, which is what the firm's owner could earn running another business, is known as


a. entrepreneur's profit.

b. economic profit.

c. excessive profit.

d. accounting profit.

normal profit.

Both price supports and a price floor can


a. decrease the price below the equilibrium price.

b. increase consumer surplus.

c. create a deadweight loss.

d. decrease output below the equilibrium quantity.

e. have no effect on producer surplus.

In economics, cost is ________, and benefit is ________.

a. the amount of money that you pay for something; the amount of money that someone else is willing to pay you
b. what you must give up to get something; what you are willing to give up to get it
c. the amount of money that you pay on the margin; the amount of money that you receive on the margin
d. what you are willing to give up to get it; what you must give up to get something
e. what you are willing to pay on the margin; what the government pays you when you are unemployed or retired

If a substitute good is easy to find, then demand for a good is


a. unit elastic.

b. perfectly inelastic.

c. elastic.

d. inelastic.

e. Substitutes don't have any effect on elasticity.







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