Multiple Choice
Why might wages differ across occupations?
15. Markets for the Factors of Production
Differences in Wages
Multiple Choice
What is labor market discrimination?
A
When government policies deliberately set different wages for groups to correct past inequalities.
B
A situation where workers with similar productivity receive different wages because of characteristics unrelated to productivity (e.g., race or gender).
C
When employers set wages solely by market forces like supply and demand without any consideration of worker characteristics.
D
When wages differ because of legitimate differences in education, experience, or job productivity among workers.
Verified step by step guidance1
Step 1: Understand the concept of labor market discrimination. It refers to a situation where workers who have similar productivity levels receive different wages or employment opportunities based on characteristics unrelated to their productivity, such as race, gender, or ethnicity.
Step 2: Differentiate labor market discrimination from other wage differences. For example, wage differences due to education, experience, or job productivity are considered legitimate and not discrimination.
Step 3: Recognize that labor market discrimination is not about government policies setting wages to correct inequalities, but rather about unfair treatment by employers or the market based on irrelevant personal characteristics.
Step 4: Note that labor market discrimination contrasts with wage determination purely by market forces like supply and demand, where wages reflect productivity and market conditions without bias.
Step 5: Summarize that labor market discrimination occurs when equally productive workers are paid differently due to non-productivity-related factors, which is the core definition to identify in microeconomic contexts.
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