1. Explain what the Index of Dissimilarity measures and how to interpret the index value. 2. Suppose the MRP of labor (for all workers) is equal to 20 - L {MRPL = 20 -L) where L is equal to the number of workers hired. Suppose women are receiving $8 per hour and 10 women are hired. How many workers would the non- discriminating employer hire? How much "loss" is the employer willing to incur by hiring only 10 women? Show graphically and calculate algebraically. 3. Chinese and Japanese Americans have average earnings that are equal to of. above those earnings of white Americans. Does this fact imply that they are NOT victims of labor market discrimination? 4. Suppose a policy to implement a permanent wage subsidy to be paid to employers to hire disadvantaged workers (those workers with relatively little -education and few marketable skills). Analyze the potential effectiveness of the subsidy in overcoming labor market discrimination against disadvantaged black and/or Hispanic workers. Analyze the potential impact on pre-market differences between white workers and black and/or Hispanic workers. 5. Define/explain the following concepts: Wage Gap Labor Market Discrimination Wage Discrimination Occupational Discrimination 6. Examine two models of labor market discrimination