Question

Which of the following causes a difference in wages but does not necessarily qualify as discrimination?

	A.	Differences in schooling.
	B.	Differences in skills.
	C.	Differences in experience.
	D.	Differences in language.
	E.	All of the above lead to differences in wages but none of them necessarily qualifies as discrimination.

Most immigrants’ lifetime earnings will be lower than those of comparable native workers. This shows

	A.	nothing about their other options in their native country, so we cannot tell if their decision to emigrate was wise.
	B.	that these immigrants miscalculated when deciding to emigrate.
	C.	that these immigrants must be of lower quality than native workers.
	D.	that these immigrants made the right decision about immigration.

Immigration will result in higher wage rates in those labor markets in which:

	A.	labor demand rises by more than labor supply.
	B.	labor demand rises by less than labor supply.
	C.	labor demand falls by less than labor supply rises.
	D.	labor demand falls by more than labor supply rises.
	E.	None of the above is correct.

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

	A.	Because workers who have the worst wage options are those most likely to leave the labor force.
	B.	Because educated workers are those most likely to leave the labor force.
	C.	Because the most experienced workers are those most likely to leave the labor force.
	D.	Because wages don't take into account salaried workers.
	E.	Because the U.S. has a negatively skewed wage distribution.

Answer 1

Ans) the correct option is e) All of the above lead to differences in wages but none of them necessarily qualifies as discrimination.

Ans) the correct option is a) nothing about their other options in their native country, so we cannot tell if their decision to emigrate was wise.

Ans) the correct option is a) labor demand rises by more than labor supply.

ans) the correct option is a) Because workers who have the worst wage options are those most likely to leave the labor force.