Question: True or False: 1. Only a weak statistical correlation exists between lifetime earnings and years of schooling. 2. Discovering that wages are lower for blacks
1. Only a weak statistical correlation exists between lifetime earnings and years of schooling.
2. Discovering that wages are lower for blacks and females does not prove wage discrimination.
3. The environmental explanation of productivity differences assumes that there has been no discrimination.
4. Discrimination may reflect information costs, where group characteristics are used as a low-cost screening device.
5. Nondiscriminating firms will have a cost disadvantage over firms that discriminate.
6. If employers can hire equally productive female employees at a lower wage than males, the profit motive will give them a strong incentive to do so.
7. Even if every individual earned exactly the same income over his or her lifetime, there would still be inequality at any given moment in time.
8. The increased proportion of the U.S. population that is either very young or very old has tended to decrease the observed inequality in the distribution of income.
9. Both the increased number of divorced couples and the rise of two-income families have caused the measured distribution of income to appear more unequal.
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