The Economics of Race, Class and Gender (Econ/ES 250)
Phil Martinez - Spring 2008

Mid-Term Exam
(110 Points = 35% of Grade)
DUE: Tuesday, MAY 13, 2008

Instructions:  This is a take-home exam, therefore, please take your time to provide clear, thoughtful answers.  Remember, the goal of this assignment is for you to illustrate to me that you’ve covered the required material, that you understand it  and that you’ve thought about it enough to provide a concise, thoughtful answers.

Section I - Multiple Choice: Record your answers on the blue scantron answer sheet provided with the exam. Use a #2 pencil. Each question is worth 1 point.

1.    In the poem, “Let America Be America Again”, Langston Hughes is presenting the problem of economic exploitation as
a.    class, race. ethnicity and gender based.
b.    class, race and ethnicity based.
c.    purely class-based.
d.    purely race-based.
e.    a free market problem which will be self-correcting.

2.    The main point of Ronald Takaki's article, "A Different Mirror", is
a.    to outline the history of racial oppression in the U.S.
b.    people see the world differently, as if using different mirrors.
c.    by listening to each others’ stories, experiences, and histories we gain a deeper
understanding of each other, ourselves, and the American identity.
d.    despite our differences we can "all live together" if we can be "color-blind" and
treat each other equally.

3.    In "A Different Mirror", Ronald Takaki illustrates the shared experience and unity of different ethnic groups and races in the U.S. by referring to
a.    similarities in the discrimination they've experienced.
b.    the common experience of freedom-seeking immigrants.
c.    the unity of the U.S. population during World War II.
d.    their common experiences expressed in railroad work songs.

4.    In "A Different Mirror", Ronald Takaki argues that a multicultural curriculum
a.    allows us to gain a more comprehensive understanding of American history by  allowing us to see events from different points of view.
b.    is divisive because it gives different interpretations of our common history.
c.    illustrates the differences between minority experiences in U.S. history and the  experience of the white, European majority.
d.    is unnecessary, since the U.S. has become so multicultural since the 1970s that discrimination and tensions are diminishing.

5.    Leonel Castillo, the former Director of the Immigration and Naturalization Service interviewed by Studs Terkel in the article entitled "The Stream", argues that
a.    undocumented immigrant workers are contributors to the U.S. because they are motivated to work harder and cannot use most public services.
b.    there has been no change in the quality or impact of immigration over time,     only the nationalities have changed from European to Latin American and Asian.
c.    there is a strange pecking order, where some nationalities of immigrants are     considered better than others.
d.    immigrants, especially the undocumented, are typically the brightest, hardest working, most perseverant  people in their native communities.
e.    all of the above.

6.     In economics the term “discrimination” refers to
a.    racial or gender prejudice.
b.    the expression of racial or gender prejudice on the job or in an economic transaction.
c.    treating equally qualified individuals differently based upon non-productive characteristics
d.    choosing between two or more options, when you really don’t like any of the options.

7.    A bank denies loans to African-American applicants more frequently because African-American applicants have less collateral wealth than white applicants with similar credit scores. This is an example of
    a.    individual discrimination.
    b.    institutional discrimination.
    c.    structural discrimination.
    d.    non-discrimination.

8.    A bank denies loans to African-American applicants more frequently because some white loan officers have a “cultural affinity” to white applicants but experienced a “culture gap” with black applicants even when the white and black applicants had similar credit scores. This is an example of
    a.    individual discrimination.
    b.    institutional discrimination.
    c.    structural discrimination.
    d.    non-discrimination.

9.    A bank denies loans to African-American applicants more frequently because the bank has decided to reject loan applications in particular “low-end” areas of the city. This is an example of
    a.    individual discrimination.
    b.    institutional discrimination.
    c.    structural discrimination.
    d.    non-discrimination.

10.    According to the summary, “The Market and Economic Stratification”, capitalism generates stratified classes because
a.    people have different abilities and exert varying degrees of effort, so they earn different places in society.
b.    those people who own more valuable assets are increasingly likely to succeed, while those who own less valuable assets are increasingly likely to fail.
c.    there is a degree of social mobility, as different people cycle through different classes in society, some getting richer and some poorer.
d.    all of the above.

11.    According to the summary, “The Market and Economic Stratification”, in a capitalist economy the market (disproportionately) distributes resources and benefits based primarily on a person’s
    a.    knowledge, skills and abilities.
    b.    effort exerted and risk taken.
    c.    I.Q. (intelligence quotient).
    d.    contribution to society.
    e.    ownership of productive assets.

12.    The market stratifies people into different classes based upon their level of
    a.    wealth
    b.    education
    c.    inheritance
    d.    employment
    e.    all of the above

13.    The market creates incentives to remove discrimination of all kinds by
    a.    legislation requiring equal opportunity and penalizing discrimination.
    b.    distributing resources based upon the  ownership of productive assets.
    c.    rewarding efficiencies, abilities and innovation.
    d.    all of the above.

14.    Using the analysis summarized in “The Market and Economic Stratification” one could argue that the current class structure in the U.S. is the result of
    a.    current supply and demand for labor and capital investment.
    b.    the legacy of past history.
    c.    discrimination.
    d.    the government’s tax, spending, and subsidy policies.
    e.    all of the above.

15.    Neoclassical Economic analysis argues that discrimination
a.    is the result of oppressive class, race, and gender power relations.
b.    is purely the result of individual, personal prejudice.
c.    will be eliminated by the market, without any intervention by the government.
d.    is the result of inherently biased economic relations generated by the market.

16.    A Political Economy analysis argues that discrimination
a.    is the result of oppressive class, race, and gender power relations.
b.    is purely the result of individual, personal prejudice.
c.    will be eliminated by the market, without any intervention by the government.
d.    is the result of inherently biased economic relations generated by the market.

17.    According to mainstream, Neo-classical economists
a.    there is no dominant method of economic discrimination, since it is not             possible to separate the impacts of class, race, ethnic and gender discrimination.
b.    class is less important than race and gender when analyzing socio-economic privilege.
c.    class is the primary or predominant method of economic discrimination.
d.    class is determined by whether a person is a capitalist, small business owner, or worker.
e.    there is no measurable, economic position that can be defined as class.

18.    Neoclassical economics treats discrimination as
a.    a personal preference, or “taste”.
b.    an irrational behavior that cannot be supported by a profit-based,                     competitive economy.
c.    something that discriminators are willing to pay for like demanding a                 particular color or option on a new car purchase.
d.    all of the above.
e.     none of the above.

19.    The Classical definition of class, as developed by Ricardo and Marx, is that class is determined by
a.    cultural values and common experiences.
b.    self-identification.
c.    one’s role in production, specifically what productive assets one owns.
d.    the level of income one earns.
e.    a combination of income, education, and attainment of one's parents.

20.    A common sociological analysis of class says class is determined primarily by
a.     one’s role in production.
b.    one’s ownership of productive assets.
c.    the income quintile that you fit in statistically.
d.    one’s occupation, education, and access to social networks.

21.    In 1976 the wealthiest 1% of the U.S. households owned 22% of the total net wealth. By 2004 the wealthiest 1% of households owned approximately
a.    26% of the total net wealth.       
b.    33% of the total net wealth.        
c.     39% of the total net wealth.
d.    44% of the total net wealth.

22.    Wealth is defined as
a.    the amount of total income a person earns over their entire working life.
b.    the value of the assets that a person owns, regardless of income.
c.    the relative standard of living that a person or household enjoys.
d.    the flow of income earned by a person or household.
e.    the value of financial assets that a person owns (e.g. stocks, bonds, investments, etc.) but not including personal or household assets.

23.    According to the text, Unlevel Playing Fields, since the early 1970s to the present real wages in the US have
a.    fell through the early 1980s.
b.    stagnated through the mid 1990s.
c.    risen slightly in the late 1990s and early 2000s.
d.    remain lower than the 1960s and 1970s after adjusting for inflation.
e.    all of the above are true.

24.    According to the text, Unlevel Playing Fields, the gap between women’s wages and men’s wages has shrunk over the last 50 years because
a.    men’s wages have fallen strongly while women’s wages have been constant.
b.    men’s wages have fallen moderately while women’s wages rose moderately.
c.    men’s wages have been constant while women’s wages rose rapidly.
d.    government imposed affirmative action has replaced men in high paying
        positions with women.

25.    According to the text, Unlevel Playing Fields, in 1973, the poorest 40% of US families earned 17.4% of all income, while the richest 5% of US families received 15.5% of all income. By 2000, these data had changed such that
a.    the poorest 40% of US families earned 15.5% of all income, while the richest 5%        of US families received 17.4%  of all income.
b.    the poorest 40% of US families earned 5% of all income, while the richest 5% of        US families received 40% of all income.
c.    the poorest 40% of US families earned 20.8% of all income, while the richest 5%        of US families received 14.1% of all income.
d.    the poorest 40% of US families earned 14.1% of all income, while the richest 5%        of US families received 20.8% of all income.

26.    In the late 1970s women employed year-round, full-time (YRFT) earned 59% of men employed YRFT. By 2003 this ratio had changed, such that women employed YRFT earn
    a.    67% men employed YRFT.
    b.    76% men employed YRFT.
    c.    81% men employed YRFT.
    d.    89% men employed YRFT.

27.    The most striking, persistent fact regarding unemployment data is that across all categories the white unemployment rates are consistently,    
    a.    approximately half of black unemployment rates.
    b.    approximately double black unemployment rates.
    c.    approximately one-third black unemployment rates.
    d.    approximately triple black unemployment rates.

28.    In 1967 the black males earned on average 65% of the white male wage. By 2003 on average black males
    a.    earned only 60% of the white male wage.
    b.    still earned only 65% of the white male wage.
    c.    earned 78% of the white male wage.
    d.    earned about 87% of the white male wage.
    e.    earned above 95% of the white male wage.

29.    According to lecture, in the U.S. the primary indicator of a person’s income level is
    a.    the level of their education.
    b.    the number of children they have.
    c.    their race or ethnicity.
    d.    their father’s job.
    e.    their marital status.

30.    According to the lecture, the number one indicator of acceptance into the top universities (e.g. Harvard University) in the U.S is.
    a.    high scores on standardized tests (e.g. the SAT)
    b.    high grades
    c.    where they went to school (Kindergarten through high school).
    d.    the wealth of their parents.
    e.    where their parents went to school

31.     Since the 1970's
a.    the income gap has been growing while the wealth gap has been shrinking.
b.    the income gap has been shrinking while the wealth gap has been growing.
c.    both the income gap and the wealth gap have been growing.
d.    both the income gap and the wealth gap have been shrinking.

32.    According to lecture, which group of college students shows the highest rates of studying, club participation, and volunteer work?
    a.    wealthy students.
    b.    students in fraternities and sororities.
    c.    middle class students from the suburbs.
    d.    students who are the first in their family to go to college.
    e.    wealthy, minority students.

33.    The poverty line is based upon
a.    an estimate of the minimum food needs and the assumption that a family of four spends one-third of its income on food.
b.    the minimum income needed to avoid dropping out of the lower-middle class.
c.    the minimum income needed to avoid malnutrition related diseases.
d.    the assumption that a family of four spends one-sixth of its income on food.
e.    the minimum food, housing, and childcare needs of a family of four updated     yearly.

34.    The poverty line inaccurately measures the poverty threshold by not taking into account
    a.    childcare costs, work-related costs, and out-of-pocket medical expenses.
    b.    regional differences in costs and income levels.
    c.    current spending and expense patterns.
    d.    a and b.
    e.    all of the above.

35.    The poverty line is generally considered to
    a.    accurately measure the degree of poverty in the U.S.
    b.    under-estimate the degree of poverty in the U.S.
    c.    over-estimate the degree of poverty in the U.S.
    d.    inconsistently measure the degree of poverty in the U.S.

36.    According to the OSU Extension website, what portion of the poor population in the US are women?
    a.    one quarter.
    b.    one third.
    c.    one half.
    d.    two thirds.
    e.    three quarters.

37.    According to the OSU Extension website, children under age 18 make up what percentage of America’s poor population?
    a.    15%             d.    60%
    b.    25%             e.    70%
    c.    40%

38.    According to the OSU Extension website, what percent of Oregonians living under the official poverty line work fulltime?
    a.    95%.             d.    25%
    b.    70%             e.    5%
    c.    50%

39.    “Human capital” is
a.    the size of the labor force an economy has to invest in all forms of production.
b.    the amount of investment individual people (humans) own, in contrast to the investments owned by corporations (financial capital).
c.    the knowledge, skills and abilities of a person, which allows them to be          productive.
d.    the amount of money the government invests in human services, e.g. workfare,         food stamps, housing subsidies, and education.

40.    The first government program to assure access to college and provide financial aid based entirely on an individual’s membership in a specific “class of citizens” was
a.    the World War II era GI Bill.
b.    the 1964 Civil Rights Act
c.      the result of the 1955 Brown vs. Board of Education Supreme Court decision.
d.    the Equal Opportunity Employment Act.
e.    Affirmative Action implemented under President Nixon.

41.    According the video, “The Secrets of the SAT,” under Affirmative Action UC Berkeley
a.    routinely admitted female and minority students who did not meet the minimum UC entrance criteria.
b.    added 200 points to the SAT score of every minority student who filled out  an Affirmative Action application.
c.    minimized using the SAT scores as a measure of academic potential.
d.    all of the above.
e.    none of the above.

42.    According to the video, “The Secrets of the SAT,” after Affirmative Action was rescinded UC Berkeley
a.    announced it would sue the Educational Testing Service to force it to make the SAT an unbiased standardized test.
b.    increased the importance of a ‘well-rounded’ academic background, including overcoming adversity or hardship and being a first generation college student.
c.    based admissions exclusively on merit measured by SAT scores and GPA.
d.    all of the above.
e.    none of the above.

43.    According the video, “The Secrets of the SAT,” the SAT was initially developed to
a.    study test taking strategies.
b.    measure the intelligence of military personnel..
c.    breakdown the wealthy elite’s monopoly on college education by admitting bright students regardless of social status to universities
d.    reinforce class privilege by assuring that only students from privileged backgrounds could pass the exam and gain entrance to universities.

44.    The fact that the better educated and wealthier a student‘s parents are the higher the student is likely to score on the SAT shows that
a.    the design of the SAT has successfully met the goals it was initially designed to         achieve.
b.    it re-produces the class structure by transferring class advantages and                 disadvantages to the next generation.
c.    equal educational opportunity has been achieved.
d.    “stereotype threat” motivates affluent students to perform higher than their potential to avoid being labeled a “slacker”.

45.    As reported in the Los Angeles Times, research indicates that the highest rate of exemptions from the time limits applied to standardized tests due to learning disabilities occur in
a.    poor, inner-city schools
b.    poor, rural schools with predominantly white students
c.    schools with a majority of their students from racial or ethnic minority                 backgrounds.
d.    schools with a high percentage students whose first language is not                     English
e.    the wealthiest schools in the country.

Section II – Short Answer Essay Questions

PLAGIARISM - All answers must be your own words reflecting your own understanding and knowledge of the material. All re-printed statements must be fully cited giving full acknowledgement to the original author. Students may not copy statements, data, or any other information from any source, including other student’s work, internet websites, and course textbooks.

INSTRUCTIONS:    Answer each of the questions below. Each answer should be no less than one side of one sheet of paper, typed and double spaced; and no longer than 2 sheets of paper front and back, double spaced. Write your answers on separate sheets of paper and staple them to the exam to be turned in.

1.    EXPLAIN the difference between the concepts of “assimilation” and “integration” as they apply to this course. ((Approximately half a page - 15 Points)

2.    Explain why the standard Neo-Classical economic analysis claims discrimination cannot persist in the market. (Approximately 1 page - 20 Points)

3.)    Explain 3 reasons why the use of SAT scores as the primary entrance criteria for universities is biased. All 3 of these reasons must be based upon class discrimination. (Approximately 1 page - 20 Points)