Multiple Choice Questions:

1. Women earn less on average than men. Which of the following can we conclude as a result?

a. Women must be less productive.

b. Men must be highly motivated and productive.

c. Women must be the victim of discrimination by employers.

d. Without considering preferences and productivity factors, differences in average earnings do not necessarily imply employment discrimination.

2. Women are more likely than men to

a. Move in order to take a higher-income job.

b. Take jobs with out-of-town travel.

c. Interrupt their careers.

d. Take jobs with uncertain schedules and long hours.

3. Economic theory suggests that when discrimination is based on the personal prejudices of employers

a. The wages of those who are discriminated against will rise.

b. It will make no difference to an employer’s costs.

c. Profit incentives will tend to reduce discrimination.

d. It will reduce production costs.

4. Women tend to earn less than men because

a. Women tend to work fewer hours, on average, than men.

b. Women tend to have fewer years of schooling, on average, than men.

c. Women are more likely to prefer jobs that give them flexible hours.

d. All of the above are true.

5. As more women prepare for careers as professionals,

a. Their level of human capital will more closely approach that of men.

b. The ratio of female to male earnings will increase.

c. Their number of years of work experience will more closely approach that of men.

d. All of the above are likely to occur.

6. The poverty rate

a. Is the proportion of persons who fall below the poverty line.

b. Is set at the cost of providing a nutritionally adequate diet.

c. Has been rising since 1960.

d. All of the above are true.

e. None of the above is true.

7. Social Security and Medicare

a. Are considered welfare programs.

b. Are only received by senior citizens with low incomes.

c. Together make up the majority of all federal transfer payments.

d. Are both considered in-kind transfer payments.

e. Are characterized by none of the above.