The Economics of Race, Class and
Gender (Econ 250/ES 250)
Phil Martinez - Spring 2008
Exam 2 – Race & Gender Discrimination
in the Market
(100 points Total)
DUE: 10AM THURSDAY, JUNE 12, 2008
5 Points Extra Credit if turned no
later than Wednesday, June 11, 4PM
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
concise, thoughtful answers.
PLAGIARISM: All answers must be your
own words reflecting your own understanding and
knowledge of the material. All
reprinted statements must be fully cited to the original author.
Students may not copy statements,
data, or any other information from any source, including
internet websites.
Section I – Short
Answer Essays
Instructions: Answer all three questions below. A
complete, well-presented answer should be around 2 pages for each
question. Shorter but no less intelligent nor less complete answers are
welcome. This exam may be hand written, but it must be easily legible.
1. What evidence is
there of economic discrimination against African-Americans in the U.S.
economy? Be sure to address at least the following issues: differences
in unemployment statistics and the wage gap. Cite specific articles
from the readings to support your answer. (20 Points)
2. Explain how discrimination in the
housing and mortgage markets has contributed to the wealth gap between
black families and white families in the U.S. Why is the wealth gap
crucial to understanding disparities between black families and white
families in the U.S.? (20 Points)
3. Explain why the
following statement is false. Since on average women earn only 76% of
men’s wages gender discrimination accounts for a full 24% loss in wages
to women.
Hint: You need to summarize the
non-discriminatory as well as discriminatory factors. (20 Points)
Section
II - Multiple Choice: Record your answers on the blue NCS answer
sheet provided in class. Use a #2 pencil.
1. According to the
lecture, racial identity is based upon
a.
social perceptions.
b.
specific race-determining genes.
c.
phenotype characteristics, such as skin, eye, and hair color.
d.
biological measurements, such as height, or eye or cheekbone
placement.
e.
all of the above.
2. The story of
Molly Bannaky, as presented in class, illustrates
a.
how the slave trade commonly operated in the early colonial
period.
b.
the central role women played in supporting black slavery in the
early colonial period.
c.
the central role women played in resisting black slavery in the
early colonial period.
d.
the degree of integration between blacks and whites based upon
class (e.g. slave and
indentured servant) status.
3. According to the
storybook Molly Bannaky and the article “The Burden of Rice” African
slaves
a.
had lower skill levels than the white American population in the
U.S.
b.
often had higher skill levels than the white population in the
U.S.
c.
faced a life no worse than they experienced in Africa.
d.
a and c only.
4. According to
Episode 1, “Gumbo”, of the documentary Jazz,
a.
during the period of slavery New Orleans had a higher degree of
integration than it did
after 1877.
b.
legalized segregation was first introduced after the Civil War.
c.
the African American population experienced more political and
economic freedoms from
1865 to 1877 than it did from 1877 to 1965.
d.
all of the above.
e.
only a and b are correct.
5. The “Jim Crow” era
a.
refers to the period of legalized segregation in the US.
b.
began in 1877, after Reconstruction.
c.
began when US troops stopped enforcing equal rights and pulled
out of the South.
d.
ended with the passage of the Civil Rights Act (1964) and the
Voting Rights Act (1965).
e.
all of the above.
6. According to
material presented in lecture (Molly Bannaky, Jazz, etc.)
African-American social, political, and economic status has
a.
consistently improved over the history of the U.S.
b.
consistently improved since the end of slavery.
c.
consistently improved since the end of WWII.
d.
experienced inconsistent periods of improvement, as well as,
periods of suppression over the
history of the U.S.
7. In
general, Americans of African descent receive inferior public education
compared to the white majority. This is an example of
a.
employment discrimination.
b.
wage discrimination.
c.
occupational discrimination.
d.
post-market discrimination.
e.
pre-market discrimination.
8. A hiring process
that arbitrarily hires African Americans last and fires them first is
an example of
a.
employment discrimination.
b.
wage discrimination.
c.
occupational discrimination.
d.
post-market discrimination.
e.
pre-market discrimination.
9. A hiring process
which arbitrarily restricts women from particular positions and keeps
them in positions in which they are overqualified is an example of
a.
employment discrimination.
b.
wage discrimination.
c.
occupational discrimination.
d.
post-market discrimination.
e.
pre-market discrimination.
10. The unemployment
rate for Americans of African descent is
a.
roughly half that of Americans of European descent.
b.
consistently twice as high as that of European-descent Americans,
regardless of all other
factors.
c.
consistently falling and will be roughly equal to the European
American rate by 2010.
d.
consistently rising compared to the rate suffered by
European-descent Americans.
11. The particular
pattern of the Black unemployment rate compared to the White
unemployment rate is important because
a.
it is proof that market competition erodes discrimination.
b.
it shows that Black employment rate has improved from about 79%
of the White unemployment rate
to approximately 88% of the White rate.
c.
it is evidence that the Civil Rights movement has been successful
in improving the employment status
of African-Americans.
d.
it is evidence that employment discrimination against Blacks is
systemic and has not improved in any
sector of the economy.
12. Gary Becker
argued that discrimination could be explained
a.
by the natural result of market competition.
b.
by the profit incentive generated by markets.
c.
as a preference for a normal good for which discriminators
would be willing to pay.
d.
all of the above.
13. Which model
concludes that a competitive market will eliminate discrimination by
forcing the discriminating firm out of business, or forcing it to stop
discriminating in order to effectively compete?
a.
The Political Economy Model.
b.
The Neoclassical Model of Market Competition
c.
Statistical Discrimination Model
d.
All of the above
14. According to the
Neo-classical view, discrimination can persist in the market only if
a.
the discriminators are a large enough segment of the market to
enforce their will via
substantial purchasing power or market power.
b.
the discriminators can identify the transaction or market
activity with the targeted group.
c.
discrimination is efficient.
d.
all of the above.
e.
a and b only.
15. Pre-market
discrimination refers to
a.
discrimination by consumers, rather than by businesses.
b.
placing signs or symbols in front of a market or business to
discourage the targeted group
from entering, for example placing a Confederate
battle flag outside a store.
c.
unequal treatment in non-market settings that result in unequal
economic results, for example
providing lower quality education in poor
communities thereby lowering the community’s
average wages.
d.
a form of economic discrimination in which a filtering process,
such as an in person interview,
is used to remove members of the targeted group from
the formal economic transaction occurs.
16. Supply-side
differences or supply-side discrimination refer to disparities
a.
between producers.
b.
that are being caused by the employer or business.
c.
that are characteristics of the workers and external to the
employment process, such as pre-
market discrimination.
d. that
improve production and increase supply.
17. Demand-side
differences or demand-side discrimination refer to disparities
a.
between producers.
b.
that are being caused by the employer or business.
c. that are characteristics of the workers and
external to the employment process, such as pre-
market discrimination.
d.
that improve production and increase supply.
18. The model of
discrimination which argues that the labor market is segregated into
two separate labor markets, one with high compensation, training,
promotions, and requires higher education; while the other has low
compensation, little training, few promotions, and requires low skill
levels is
a.
the Employee Discrimination model.
b.
the Dual or Segmented Labor Market model.
c.
the model of Statistical Discrimination.
d.
the Employer Discrimination model.
19. Which of
the following models is associated with the Political Economy approach
to analyzing economic discrimination?
a.
the Employer-Taste for Discrimination model.
b.
the Employee Discrimination model.
c.
the model of Statistical Discrimination.
d.
the Dual or Segmented Labor Market model.
20. Anytime
discrimination occurs
a.
economic efficiency falls.
b.
economic efficiency is not affected.
c.
economic efficiency is likely to improve.
d.
any of these are possible results.
21. In the article, “Black-White
Income Differences”, Michael Reich argues that
a.
income date since WWII indicate that Black income has been
consistently catching up to White
income.
b.
the pattern of Black-to-White income is best explained by
decreasing discrimination in the labor market.
c.
Black income has caught up to White during periods of political
and legislative pressure
for equal treatment.
d.
Black income has caught up to White income due to the competitive
pressures of the market.
22. In the article, “Black-White
Income Differences”, Michael Reich makes which of the following claims?
a.
Black incomes improved during WWII because the federal government
established non-
discriminatory hiring policy for the first time in
U.S. history, due to political pressure.
b.
Progress in black incomes has been uneven, often deteriorating
during many periods.
c.
Most of the increase in the black-white income ratio was
concentrated in the 1960s and early
1970s.
d.
All of the above.
23. Help-wanted ads
cited by in class (Darity and Mason) provide evidence that
a.
the competitive market did not remove employment discrimination
independently.
b.
it took federal legislation to end the most overt forms of
employment discrimination.
c.
the market formally segregated women into lower-paying jobs.
d.
the market formally incorporated racial preferences as qualifying
criteria for jobs.
e.
all of the above.
24. Darity and Mason
cite an audit study by the Fair Employment Council of Greater
Washington D.C.
According to this study
a.
half of the white job applicants received job offers compared to
only 11% of black applicants
even
though the
applicants were matched with similar credentials.
b.
whites were offered 15 cents more per hour than their black
counterpart.
c.
whites were disproportionately considered for unadvertised,
higher level positions.
d.
rates of discrimination based upon race or Hispanic ethnicity
were above 20%.
e.
all of the above.
25. Darity
and Mason offer which of the following as a non-traditional analysis of
the persistence of the wage gap?
a.
The wage gap persists because blacks on average have lower
quality educational opportunities.
b.
The wage gap persists because as a group is discriminated against
it may lose motivation and
cease
to pursue
educational and job training opportunities.
c.
The level of racism has stayed relatively constant generating a
persistent wage gap.
d.
all of the above.
e.
There is no economic discrimination in the wage gap.
26. The Darity and
Mason article indicates that the percent of the male black-white wage
gap due to discrimination is approximately
a.
5% or less
c. 15% to 20%
e. 12%
to 15%
b.
5% to 12%
d. 20% to 25%
27. Since the early
1970's average black wages have
a.
been slowly falling farther behind average white wages
b.
continued to catch-up to white wages, but at a slower rate.
c.
continued to catch-up to white wages at the same rate as 1940 to
1970
d.
caught-up more rapidly with white wages.
28. The
Female-to-Male Earnings Ratio measures
a.
the differences in occupations between men and women.
b.
the percentage of a man’s pay that a woman earns when the man and
woman are
employed in the same job and have equal
qualifications.
c.
the full degree of gender discrimination in the economy.
d. the average difference between male income
and female income in the economy.
29. In 1967 the male
high school drop-out wage was higher than the female college graduate
wage. By 1995
a.
the female college graduate wage was greater than the male
college drop-out wage.
b.
the male college drop-out wage was higher than the female college
graduate wage.
c.
the male high school drop-out wage was still higher than the
female college graduate wage.
d.
only a and b are true.
e.
only b and c are true.
30. Which of the
following are non-discriminatory factors that may explain some portion
of the female-to-male earnings gap?
a.
Women intentionally choose to stay out of the work force for
periods of time to bear and
raise children.
b.
Women struggle to balance their jobs with childcare by choosing
jobs that are more easily
integrated into
home-life, but pay
lower wages.
c.
Since women of equal qualifications are paid less, it is rational
for women to choose to invest
in less
education and
training since it won’t pay off.
d.
a and b
e.
b and c
31. Which of the
following are discriminatory factors that may explain some portion of
the female-to-male earnings gap?
a.
Women are socialized to value family responsibility over career
achievements.
b.
Women choose jobs that are close to home and flexible to be more
available to children when
needed.
c.
Poor labor market opportunities for women lower their earnings
and increase the attractiveness
of
work in the home.
d.
a and b
e.
a and c
32. The Texaco case
of racial discrimination is an example of
a.
the Employer-Taste for Discrimination model.
b.
the Employee Discrimination model.
c.
the model of Statistical discrimination.
d.
the Over-Crowding model.
e.
the Dual or Segmented Labor Market model.
33. The case of the
northern California district of the National Forest Service, where
female workers were denied promotions, higher-paying jobs, and harassed
all by male co-workers is an example of
a.
the Employer-Taste for Discrimination model.
b.
the Employee Discrimination model.
c.
the model of Statistical discrimination.
d.
the Over-Crowding model.
e.
the Dual or Segmented Labor Market model.
34. The
discrimination model where the employer believes women are less
productive on average and therefore treats all female applicants and
employees as if they were each less productive is
a.
the Employer-Taste for Discrimination model.
b.
the Employee Discrimination model.
c.
the model of Statistical Discrimination.
d.
the Dual or Segmented Labor Market model.
35. The
discrimination model which argues that women earn lower wages because
they are squeezed into a segregated market where the supply of female
labor is greater than the demand for female labor
a.
the Employer-Taste for Discrimination model.
b.
the Employee Discrimination model.
c.
the Statistical Discrimination model.
d.
the Over-Crowding model.
e.
the Dual or Segmented Labor Market model.
36. In general,
compared to African Americans, women face higher rates of
a.
occupational segregation.
b.
employment discrimination.
c.
human capital discrimination.
d.
a and b
e.
b and c
37. The advancement
of white women into the middle levels of business ownership and
management, but the continued lack of women at the upper and executive
levels of corporate management is referred to as:
a.
“the stuck elevator” phenomenon.
b.
“the glass ceiling”.
c.
“the mommy-manager” syndrome.
d.
“the biological clock”.
e.
comparable worth.
38. The 1991 Boston
Federal Reserve Study of bank lending practices
a.
proved that discrimination in lending practices accounted for a
56% higher denial rate for black
and Hispanic loan
applicants.
b.
confirmed that discrimination did not occur in bank loan process.
c.
provided contrary and inconclusive evidence that discrimination
in bank loans was responsible
for the difference
in loan approvals between black and white applicants.
d.
proved that discriminatory lending practices were the result of
individual discrimination by
white loan officers
who more readily identified with white applicants.
39. In his book
“Being Black, Living in the Red”, Dalton Conley argues that the single
greatest factor responsible for black and white differences in economic
outcomes is
a.
differences in education.
b.
differences in income.
c.
wage discrimination.
d.
employment discrimination.
e.
differences in wealth.
40. The report,
“Foreclosed, State of the Dream 2008” argues that the sub-prime
mortgage crisis
a.
disproportionately affect minority communities, who are 3 times
more likely to have a high cost,
sub-prime loan.
b.
will cost the minority communities at least $164 billion in
foreclosures and lost wealth.
c.
result in a concentration in minority neighborhoods of abandoned
houses, increased, crime,
lower housing
values, a shrinking tax base, and cuts in local social services.
d.
All of the above.