1. Why is preference-based discrimination by employers easier to overcome than preference-based discrimination by employees?

A) the benefits of employer-base discrimination are higher.

B) the compensation needed to overcome employee-based discrimination is higher.

C) is is easier to police employer-based discrimination.

D) employee-based discrimination has a more direct effect on productivity

2. If arbitrage becomes extensive, a price-discriminating monopolist selling its patented drug in two markets will

A) quit selling the product in the market with the inelastic demand.

B) begin to charge the same price in both markets.

C) increase the price in the inelastic market and lower the price in the elastic market.

D) raise the price in both markets.

3. Which of the following is NOT a good example of a network good?

A) photo sharing Web sites

B) internet dating sites

C) telephones

D) automobiles

4. Discrimination by employers

A) tends to break down quickly because employers are always looking to hire the most productive workers at the lowest wages in order to maximize profits.

B) tends to break down slowly because employers have many other options when hiring workers that will still maximize profits.

C) results in statistical discrimination.

D) is the worst kind of discrimination for minorities, as employers are able to restrict employment in these underrepresented groups the most.