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characteristics.","correct":true,"explanation":"This is wage discrimination because equally productive workers receive different pay for characteristics such as sex, ethnicity or age rather than for differences in output."},{"text":"Workers have different productivity; pay differs because of personal characteristics.","correct":false,"explanation":"Different productivity can justify different wages, so this describes a productivity-based pay difference. Discrimination requires equal productivity with pay differing because of personal characteristics."},{"text":"Workers have equal qualifications; pay differs because of market conditions.","correct":false,"explanation":"Equal qualifications do not necessarily mean equal productivity, and general market conditions affect workers broadly. Discrimination requires equal productivity with pay differing because of personal characteristics."},{"text":"Workers have different experience; pay differs because of employer prejudice.","correct":false,"explanation":"Experience differences may legitimately affect productivity and pay, while prejudice alone is insufficient here. Wage discrimination requires equal productivity despite different treatment based on personal characteristics."}]},{"id":"89160aeb-16b6-42e5-b261-5f9a35141c3e","cardType":"basic","points":1,"front":"How does employer prejudice affect labour demand for the targeted group?","back":"It shifts the group’s labour demand curve left.","mcqOptions":[{"text":"It shifts the group’s labour demand curve left.","correct":true,"explanation":"Employer prejudice reduces the number of targeted workers firms are willing to hire at each wage, shifting their labour demand curve to the left."},{"text":"It shifts the group’s labour demand curve right.","correct":false,"explanation":"A rightward shift represents increased demand, whereas prejudice makes firms less willing to employ the targeted group. The correct effect is a leftward shift."},{"text":"It shifts the group’s labour supply curve left.","correct":false,"explanation":"Prejudice by employers affects firms’ willingness to hire, which is labour demand. A leftward demand shift occurs, rather than a movement of labour supply."},{"text":"It leaves the group’s labour demand curve unchanged.","correct":false,"explanation":"Employer prejudice directly reduces demand for the targeted group’s labour. Assuming demand is unchanged ignores the discriminatory reduction in employers’ willingness to hire."}]},{"id":"e9701d0f-0606-4f7b-8481-a41cb4d09af6","cardType":"basic","points":1,"front":"What happens to the targeted group’s wage when its labour demand shifts left?","back":"The group’s equilibrium wage falls.","mcqOptions":[{"text":"The group’s equilibrium wage falls.","correct":true,"explanation":"A leftward demand shift lowers the wage firms are willing to pay at the market equilibrium, so the targeted group’s equilibrium wage falls."},{"text":"The group’s equilibrium wage rises.","correct":false,"explanation":"A rise would follow stronger labour demand or reduced labour supply. Discrimination shifts demand left, lowering the equilibrium wage for the targeted group."},{"text":"The group’s equilibrium wage stays constant.","correct":false,"explanation":"A demand reduction normally changes the market equilibrium. With labour supply unchanged, the leftward shift lowers the targeted group’s equilibrium wage."},{"text":"The group’s equilibrium wage becomes zero.","correct":false,"explanation":"Discrimination reduces demand but does not generally eliminate all employment or wages. The equilibrium wage falls from its original level rather than necessarily reaching zero."}]},{"id":"6068d7c1-3393-4d20-a8eb-20989839938d","cardType":"basic","points":1,"front":"What happens to the targeted group’s employment when its labour demand shifts left?","back":"The group’s equilibrium employment falls.","mcqOptions":[{"text":"The group’s equilibrium employment falls.","correct":true,"explanation":"At the lower demand for the targeted group’s labour, firms hire fewer workers at equilibrium, so the group’s equilibrium employment falls."},{"text":"The group’s equilibrium employment rises.","correct":false,"explanation":"Higher employment would require increased labour demand or lower wages attracting more hiring. A leftward demand shift reduces the equilibrium quantity of labour employed."},{"text":"The group’s equilibrium employment stays constant.","correct":false,"explanation":"The demand shift changes the equilibrium quantity traded in the labour market. With supply otherwise unchanged, fewer targeted workers are employed."},{"text":"The group’s equilibrium employment doubles.","correct":false,"explanation":"Doubling employment would require a substantial demand expansion, not employer prejudice. A leftward demand shift reduces the equilibrium employment of the targeted group."}]},{"id":"9fcdcdb8-5197-4993-a8a7-b9a5567e083d","cardType":"basic","points":1,"front":"How can discrimination affect the types of jobs open to a targeted group?","back":"Workers may be pushed into lower-status jobs.","mcqOptions":[{"text":"Workers may be pushed into lower-status jobs.","correct":true,"explanation":"Discrimination can restrict access to prestigious or senior occupations, forcing capable workers towards jobs with lower status and often poorer progression opportunities."},{"text":"Workers may be promoted into higher-status jobs.","correct":false,"explanation":"Preferential treatment could produce this outcome, but discrimination against a group restricts opportunities. The typical effect is being pushed into lower-status jobs."},{"text":"Workers may be pushed into better-paid jobs.","correct":false,"explanation":"Discrimination usually limits access to desirable roles rather than directing workers into better-paid employment. Targeted workers may instead be concentrated in lower-status jobs."},{"text":"Workers may be excluded from all employment.","correct":false,"explanation":"Severe discrimination can cause very high exclusion, but the general labour-market effect is occupational restriction. Workers may be pushed into lower-status jobs rather than universally excluded."}]},{"id":"260727e2-35a6-41e7-a3ff-6cbbbf107bd4","cardType":"basic","points":1,"front":"What preference must exist for wage discrimination to occur?","back":"A prejudice against the group that is unrelated to productivity.","mcqOptions":[{"text":"A prejudice against the group that is unrelated to productivity.","correct":true,"explanation":"Wage discrimination requires an employer preference against a group that cannot be explained by differences in workers’ productivity or expected contribution."},{"text":"A preference for the group that is related to productivity.","correct":false,"explanation":"A productivity-related preference may reflect rational pay or hiring decisions rather than discrimination. The relevant prejudice is unrelated to productivity."},{"text":"A shortage of workers that is unrelated to productivity.","correct":false,"explanation":"Worker shortages affect market wages through supply, not through discriminatory preferences. Wage discrimination requires prejudice against the group unrelated to productivity."},{"text":"A prejudice against the group that is caused by productivity.","correct":false,"explanation":"If treatment differences arise from genuine productivity differences, they may be economically justified. Discrimination involves prejudice unrelated to productivity."}]},{"id":"84f805f9-33a8-465a-b1d0-6990bd0d1dc1","cardType":"basic","points":1,"front":"What market structure allows wage discrimination to persist?","back":"Imperfect competition, giving employers market power or protecting them with entry barriers.","mcqOptions":[{"text":"Imperfect competition, giving employers market power or protecting them with entry barriers.","correct":true,"explanation":"Imperfect competition can give employers wage-setting power, while entry barriers reduce competitive pressure that would otherwise punish discriminatory firms."},{"text":"Perfect competition, giving employers market power or protecting them with entry barriers.","correct":false,"explanation":"Perfect competition removes individual employers’ market power and makes discrimination costly. Imperfect competition is the structure that can allow it to persist."},{"text":"Monopsony-free competition, giving employers market power or protecting them with entry barriers.","correct":false,"explanation":"The absence of monopsony or employer power would weaken the ability to impose discriminatory wages. Imperfect competition, with market power or entry barriers, supports persistence."},{"text":"Perfect information, giving employers market power or protecting them with entry barriers.","correct":false,"explanation":"Perfect information concerns knowledge rather than market structure and does not itself give employers market power. Imperfect competition can protect discriminatory behaviour."}]},{"id":"ca7f78cf-30a8-49eb-9f2e-fea162a8d358","cardType":"basic","points":2,"front":"How can imperfect information cause labour market discrimination?","back":"It enables statistical discrimination: judging individuals by group averages.","mcqOptions":[{"text":"It enables statistical discrimination: judging individuals by group averages.","correct":true,"explanation":"When individual productivity is difficult to observe, employers may use group averages as a proxy, judging individuals by characteristics associated with their group."},{"text":"It enables direct discrimination: judging individuals by measured productivity.","correct":false,"explanation":"Measured individual productivity reduces the need to rely on group assumptions. Imperfect information can instead encourage statistical discrimination based on group averages."},{"text":"It enables statistical discrimination: judging individuals by personal interviews.","correct":false,"explanation":"Personal interviews seek individual information, whereas statistical discrimination substitutes group averages when individual productivity is uncertain."},{"text":"It enables random discrimination: judging individuals without any evidence.","correct":false,"explanation":"Statistical discrimination is not random: it uses imperfect information and group averages as a potentially inaccurate proxy for individual productivity."}]},{"id":"b542f0cd-f992-4104-9eec-5853ee49eaff","cardType":"basic","points":2,"front":"Why can weak enforcement of anti-discrimination law sustain unequal pay or hiring?","back":"Unequal treatment faces little legal or reputational cost.","mcqOptions":[{"text":"Unequal treatment faces little legal or reputational cost.","correct":true,"explanation":"Weak enforcement lowers the expected penalties and public consequences of discrimination, making unequal pay or hiring easier for employers to continue."},{"text":"Unequal treatment faces substantial legal or reputational cost.","correct":false,"explanation":"Strong legal penalties and reputational damage would discourage discrimination. Weak enforcement sustains it because unequal treatment faces little such cost."},{"text":"Equal treatment faces little legal or reputational cost.","correct":false,"explanation":"The relevant deterrent concerns unequal treatment, not equal treatment. Weak enforcement allows discriminatory behaviour to continue with little legal or reputational cost."},{"text":"Unequal treatment faces little financial productivity cost.","correct":false,"explanation":"The mechanism here is inadequate deterrence through law and reputation, not a claim about productivity costs. Weak enforcement reduces legal or reputational consequences."}]},{"id":"c8f07d75-f273-4535-835d-ea1f159e54b2","cardType":"basic","points":2,"front":"Why is discrimination unlikely to persist in a perfectly competitive labour market?","back":"Non-discriminating firms hire equally productive workers more cheaply, outcompeting prejudiced firms.","mcqOptions":[{"text":"Non-discriminating firms hire equally productive workers more cheaply, outcompeting prejudiced firms.","correct":true,"explanation":"Competitive firms that ignore irrelevant personal characteristics can hire equally productive workers at lower wages, reducing costs and undermining firms that pay more because of prejudice."},{"text":"Non-discriminating firms hire equally productive workers more expensively, outcompeting prejudiced firms.","correct":false,"explanation":"Hiring at a higher cost would not normally create a competitive advantage. Non-discriminating firms benefit by hiring equally productive workers more cheaply."},{"text":"Prejudiced firms hire equally productive workers more cheaply, outcompeting non-discriminating firms.","correct":false,"explanation":"This reverses the competitive effect. Prejudice makes firms reject cheaper equally productive labour, so non-discriminating firms gain the cost advantage."},{"text":"Non-discriminating firms hire less productive workers more cheaply, outcompeting prejudiced firms.","correct":false,"explanation":"Lower wages alone do not guarantee an advantage if productivity is also lower. The argument depends on hiring equally productive workers more cheaply."}]},{"id":"bd62b7f7-7a91-44b6-b75c-93d624b22191","cardType":"basic","points":1,"front":"What direct financial harm does discrimination cause affected workers?","back":"Affected workers lose income.","mcqOptions":[{"text":"Affected workers lose income.","correct":true,"explanation":"Discriminatory wages or reduced employment directly lower the earnings received by affected workers, creating an immediate financial loss."},{"text":"Affected workers gain income.","correct":false,"explanation":"Discrimination lowers wages or employment opportunities rather than increasing earnings. The direct financial harm is lost income."},{"text":"Affected workers lose productivity.","correct":false,"explanation":"Productivity may be underused, but the direct financial harm to workers is lost income. Productivity is the wider economic consequence, not the payment itself."},{"text":"Affected workers gain market power.","correct":false,"explanation":"Discrimination generally weakens workers’ opportunities and bargaining position. It directly causes lost income, not increased market power."}]},{"id":"6fa4972a-5a63-4e90-bb3e-851b4390674f","cardType":"basic","points":2,"front":"Why does labour market discrimination harm the wider economy?","back":"It underuses talent, reducing output and efficiency.","mcqOptions":[{"text":"It underuses talent, reducing output and efficiency.","correct":true,"explanation":"When capable people are excluded from suitable jobs or paid below their contribution, resources are misallocated, reducing potential output and productive efficiency."},{"text":"It overuses talent, reducing output and efficiency.","correct":false,"explanation":"Discrimination prevents talent from being used fully or in the most productive roles. The relevant effect is that it underuses talent."},{"text":"It underuses capital, increasing output and efficiency.","correct":false,"explanation":"The central resource misallocated by labour-market discrimination is human talent. Underusing it reduces rather than increases output and efficiency."},{"text":"It allocates talent efficiently, reducing output and efficiency.","correct":false,"explanation":"Efficient allocation would support higher output, so these claims conflict. Discrimination harms the wider economy because it underuses talent."}]},{"id":"092a9929-9b59-445d-b73c-ccc4db5144ed","cardType":"basic","points":2,"front":"Why is a raw gender pay gap not necessarily all discrimination?","back":"Some may reflect supply-side factors, such as hours, career breaks or occupation.","mcqOptions":[{"text":"Some may reflect supply-side factors, such as hours, career breaks or occupation.","correct":true,"explanation":"Observed average pay differences can partly result from labour-supply choices and employment patterns, including hours worked, career breaks and occupational selection."},{"text":"Some may reflect demand-side factors, such as identical hours, career breaks or occupation.","correct":false,"explanation":"Employer demand can contribute to discrimination, but identical hours cannot explain a pay difference and career breaks are supply-side factors. The raw gap is not all discrimination."},{"text":"Some may reflect supply-side factors, such as identical hours, continuous careers or equal occupation.","correct":false,"explanation":"Identical hours, continuous careers and equal occupations remove rather than provide the listed explanations. Supply-side differences such as hours, breaks and occupation can affect the raw gap."},{"text":"Some may reflect random factors, such as inflation, taxation or interest rates.","correct":false,"explanation":"Macroeconomic variables do not explain the main individual-level composition of a gender pay gap. Supply-side factors such as hours, career breaks and occupation can do so."}]},{"id":"34b07749-a46b-4f30-ad0c-fbd4ac54a73d","cardType":"basic","points":2,"front":"Why is the unexplained pay gap a closer proxy for discrimination than the raw gap?","back":"It controls for factors such as hours, occupation, experience and qualifications.","mcqOptions":[{"text":"It controls for factors such as hours, occupation, experience and qualifications.","correct":true,"explanation":"Adjusting for measurable productivity-related characteristics makes the remaining difference more closely associated with discrimination than the unadjusted raw pay gap."},{"text":"It controls for factors such as age, location, inflation and taxation.","correct":false,"explanation":"These factors may matter in some comparisons, but the closer discrimination proxy controls for work-related characteristics such as hours, occupation, experience and qualifications."},{"text":"It controls for factors such as hours, occupation, experience and household income.","correct":false,"explanation":"Household income is not a direct measure of an individual’s job-related pay determinants. Qualifications are the relevant omitted factor in this list."},{"text":"It controls for factors such as qualifications, preferences, personality and motivation.","correct":false,"explanation":"Some listed traits are difficult to measure objectively and may themselves reflect social conditions. The standard adjustment uses observable factors including hours, occupation, experience and qualifications."}]},{"id":"ae408491-54f7-488d-8660-c70cf5e78102","cardType":"cloze","points":null,"front":"With male pay of $\\pounds 20.00$ and female pay of $\\pounds 17.60$, the absolute pay gap is $\\text{[...]}$.","back":"With male pay of $\\pounds 20.00$ and female pay of $\\pounds 17.60$, the absolute pay gap is $\\boxed{\\pounds 2.40}$.","mcqOptions":[{"text":"$$\\pounds 2.40$","correct":true,"explanation":"Subtracting female pay from male pay gives $\\pounds 20.00 - \\pounds 17.60 = \\pounds 2.40$, which is the absolute difference in pay."},{"text":"$$\\pounds 2.20$","correct":false,"explanation":"This comes from an arithmetic subtraction error. The absolute gap is found by subtracting $\\pounds 17.60$ from $\\pounds 20.00$, giving $\\pounds 2.40$."},{"text":"$$\\pounds 3.40$","correct":false,"explanation":"This usually results from mishandling the decimal places during subtraction. Correctly calculating $20.00 - 17.60$ produces an absolute gap of $\\pounds 2.40$."},{"text":"$$\\pounds 37.60$","correct":false,"explanation":"Adding the two salaries measures combined pay, not their difference. Subtracting female pay from male pay gives the correct absolute gap of $\\pounds 2.40$."}]},{"id":"6b8b6aec-0b90-4b23-a556-daa1c234fda9","cardType":"cloze","points":null,"front":"A $\\pounds 2.40$ gap relative to male pay of $\\pounds 20.00$ gives a gender pay gap of $\\text{[...]}$.","back":"A $\\pounds 2.40$ gap relative to male pay of $\\pounds 20.00$ gives a gender pay gap of $\\boxed{12\\%}$.","mcqOptions":[{"text":"$$12\\%$","correct":true,"explanation":"The percentage gap is calculated as $\\pounds 2.40 \\div \\pounds 20.00 \\times 100 = 12\\%$, using male pay as the reference figure."},{"text":"$$10\\%$","correct":false,"explanation":"This is a common rounding or denominator error. Dividing the $\\pounds 2.40$ difference by male pay of $\\pounds 20.00$ gives $12\\%$."},{"text":"$$13.6\\%$","correct":false,"explanation":"This uses female pay or an incorrect denominator instead of the stated male-pay reference. The required calculation is $2.40 \\div 20.00 \\times 100 = 12\\%$."},{"text":"$$240\\%$","correct":false,"explanation":"The decimal difference has been multiplied by 100 without first dividing by the male wage. Relative to $\\pounds 20.00$, the $\\pounds 2.40$ gap is $12\\%$."}]},{"id":"3d0b6c9d-23a3-4445-8323-142c4c1c2717","cardType":"cloze","points":null,"front":"If male pay is $\\pounds 20.00$ and female pay is $\\pounds 18.40$, the percentage pay gap is $\\text{[...]}$.","back":"If male pay is $\\pounds 20.00$ and female pay is $\\pounds 18.40$, the percentage pay gap is $\\boxed{8\\%}$.","mcqOptions":[{"text":"$$8\\%$","correct":true,"explanation":"The pay difference is £1.60, and dividing this by the male pay of £20.00 gives 0.08. Multiplying by 100 produces an 8% percentage pay gap."},{"text":"$$7\\%$","correct":false,"explanation":"This understates the gap because £1.60 is not 7% of £20.00. The correct calculation is £1.60 ÷ £20.00 × 100, giving an 8% pay gap."},{"text":"$$8.7\\%$","correct":false,"explanation":"This likely results from dividing the difference by female pay rather than male pay. The standard calculation uses £20.00 as the base, giving £1.60 ÷ £20.00 × 100 = 8%."},{"text":"$$10\\%$","correct":false,"explanation":"This rounds the £1.60 difference too far or treats it as approximately £2.00. Using the exact figures, £1.60 divided by £20.00 and multiplied by 100 equals 8%."}]},{"id":"cbcc1b3f-a27e-4f9c-aa28-6520bbedf9d8","cardType":"cloze","points":null,"front":"In the discrimination diagram, the vertical axis measures the [ ] and the horizontal axis measures the quantity of labour ($QL$).","back":"In the discrimination diagram, the vertical axis measures the wage rate ($W$) and the horizontal axis measures the quantity of labour ($QL$).","mcqOptions":[{"text":"wage rate ($W$)","correct":true,"explanation":"The vertical axis shows the wage rate paid for labour, represented by $W$. The horizontal axis shows the quantity of labour employed, represented by $QL$."},{"text":"employment rate ($E$)","correct":false,"explanation":"Employment is measured as a quantity rather than the price of labour in this diagram. The vertical axis therefore measures the wage rate ($W$), while quantity of labour is on the horizontal axis."},{"text":"labour productivity ($LP$)","correct":false,"explanation":"Labour productivity may affect labour demand but is not the vertical-axis variable in this diagram. The vertical axis measures the wage rate ($W$), with quantity of labour ($QL$) horizontally."},{"text":"price level ($P$)","correct":false,"explanation":"The price level concerns the average price of goods and services across the economy, not the price of labour. This labour-market diagram has wage rate ($W$) on its vertical axis."}]},{"id":"0087d1cc-b459-42ff-bb14-206dfd8726c3","cardType":"cloze","points":null,"front":"In the discrimination diagram, the vertical axis measures the wage rate ($W$) and the horizontal axis measures the [ ].","back":"In the discrimination diagram, the vertical axis measures the wage rate ($W$) and the horizontal axis measures the quantity of labour ($QL$).","mcqOptions":[{"text":"quantity of labour ($QL$)","correct":true,"explanation":"The horizontal axis measures how much labour is employed, expressed as the quantity of labour ($QL$). The wage rate ($W$) is shown on the vertical axis."},{"text":"labour supply ($SL$)","correct":false,"explanation":"Labour supply is represented by a curve showing workers’ willingness to work at different wages, not by the axis itself. The horizontal axis measures the quantity of labour ($QL$)."},{"text":"quantity of capital ($QK$)","correct":false,"explanation":"Capital is a different factor of production from labour, so its quantity would not be shown on this labour-market diagram. The horizontal axis measures quantity of labour ($QL$)."},{"text":"employment rate ($EL$)","correct":false,"explanation":"The employment rate is the proportion of the working population in work, usually expressed as a percentage. The diagram instead measures the absolute quantity of labour ($QL$) horizontally."}]},{"id":"0671f761-2906-475e-ab4e-a6a4d4c04333","cardType":"cloze","points":null,"front":"The vertical gap between $D0$ and $D1$ at $Qc$ represents the [ ].","back":"The vertical gap between $D0$ and $D1$ at $Qc$ represents the wage penalty from discrimination.","mcqOptions":[{"text":"wage penalty from discrimination","correct":true,"explanation":"At $Qc$, the vertical distance between the two demand curves shows how much lower the discriminated group’s wage is than the non-discriminated wage. This is the wage penalty from discrimination."},{"text":"gender pay gap","correct":false,"explanation":"The gender pay gap is a broader measured difference in average earnings and need not equal this diagram’s specific curve distance. The vertical gap at $Qc$ represents the wage penalty from discrimination."},{"text":"opportunity cost of discrimination","correct":false,"explanation":"Opportunity cost refers to the benefits or output forgone because of a choice, rather than the wage difference between two demand curves. The gap directly represents the wage penalty from discrimination."},{"text":"marginal revenue product of labour","correct":false,"explanation":"Marginal revenue product is the additional revenue generated by employing one more worker and helps determine labour demand. It is not the vertical gap, which represents the wage penalty from discrimination."}]},{"id":"6b0d9911-46aa-4380-995a-5794bc77fb68","cardType":"cloze","points":null,"front":"UK employers with [ ] must publish gender pay gap data annually.","back":"UK employers with 250 or more staff must publish gender pay gap data annually.","mcqOptions":[{"text":"250 or more staff","correct":true,"explanation":"Under UK gender pay gap reporting rules, employers with 250 or more employees must publish their gender pay gap data annually, covering relevant public, private and voluntary-sector organisations."},{"text":"100 or more staff","correct":false,"explanation":"A threshold of 100 employees is below the UK statutory reporting threshold. The requirement applies to employers with 250 or more staff, subject to the relevant reporting rules."},{"text":"150 or more staff","correct":false,"explanation":"Although 150 employees may be a substantial workforce, it is still below the legal threshold for mandatory gender pay gap reporting. The correct threshold is 250 or more staff."},{"text":"500 or more staff","correct":false,"explanation":"This threshold is too high and would exclude employers legally required to report. UK employers must publish gender pay gap data annually once they have 250 or more staff."}]}]}],"examCountdown":{"examDate":"2027-05-10","paperLabel":"Paper 1"},"heading":"1.6.7 Discrimination in the labour market","title":"1.6.7 Discrimination in the labour market Flashcards","topbar":{"backHref":"/a-level/economics/aqa/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"751b9d5e-4b9b-5932-80fa-88b61cad016e","walled":"$L39"}],"$L3a","$L3b"]