1.Explain the factors that lead to statistical discrimination.

2.Explain the taste for discrimination model.

3.Use simple supply and demand analysis to explain the impact of occupational segregation or "crowding" on the relative wage rates of men and women.

4.

Refer to the following diagram, in which W_f/W_m is the ratio of the female wage rate to the male wage rate and answer the following questions.

(1) The demand curve in the diagram eventually slopes downward because:

a.as the female/male wage ratio falls, more firms find it "too costly" to indulge their tastes for discrimination

b.as the female/male wage ratio rises, more firms find it "too costly" to indulge their tastes for discrimination

c.as the female/male wage ratio falls, firms will raise their discrimination coefficients

d.as the female/male wage ratio falls, firms will reduce their discrimination coefficients

(2) The horizontal portion of the demand curve will be extended by an increase in the:

a.number of firms that discriminate

b.number of firms that do not discriminate

c.productivity of males

d.supply of female workers

(3) A decrease in the supply of female workers will:

a.extend the horizontal portion of the demand curve, raising the relative wage of females

b.lower the relative wage of females

c.eliminate the wage differential between males and female if the supply curve intersects the horizontal portion of the demand curve

d.embolden more employers to discriminate, reducing the horizontal portion of the demand curve, and lowering the relative wage of female.