Most women still work in female-dominated jobs and at lower wages than men typically earn. This phenomenon puzzles supply-side economists, who believe that the demands of the marketplace and the play of self-interest dictate that all inequities in economic status engendered by discrimination must eventually disappear. One of their number, Solomon Polachek, has recently proposed a supply-side explanation for job segregation by gender that emphasizes the depreciation of human capital while one is on leave from work.

This theory posits that human beings are a form of capital: investments (such as education or job experience) increase market value and depreciation (such as unemployment or voluntary absence from work) decreases market value. Polachek argues, on the basis of this theory, that wage depreciation occurs if a person has lower real wages upon returning to employment than he or she had on quitting. In addition, Polachek asserts that some occupations entail greater risks of wage depreciation than others and that women, who are much more likely than men to plan intermittent full-time employment, may choose occupations with low depreciation penalties in order to maximize lifetime earnings. Since most men, on the other hand, plan continuous full-time employment, they can afford to choose occupations that demand consistent maintenance and improvement of skills. Thus, according to Polachek, differences in employment continuity lead to gender differences in the jobs chosen to maximize lifetime earnings, and hence gender segregation in the workplace is a product of rational pecuniary choices made by male and female workers.

Polachek’s thesis, though quite sophisticated, is not supported by empirical evidence. Contrary to Polachek’s prediction, women in predominantly male occupations suffer the same wage depreciation rates as women in predominantly female occupations. These findings tell us that for women the depreciation penalty—the amount by which real wages drop during periods away from employment—is no lower in female- than in maledominated jobs. Nor, as some other economists have proposed, do female-dominated jobs have higher entry-level salaries, though much lower wage-appreciation rates, than male-dominated jobs. Thus, there is no economic advantage to women in choosing female-dominated jobs.

Which of the following best describes the

organization of the passage?

Most women still work in female-dominated jobs and at lower wages than men typically earn. This phenomenon puzzles supply-side economists, who believe that the demands of the marketplace and the play of self-interest dictate that all inequities in economic status engendered by discrimination must eventually disappear. One of their number, Solomon Polachek, has recently proposed a supply-side explanation for job segregation by gender that emphasizes the depreciation of human capital while one is on leave from work.

This theory posits that human beings are a form of capital: investments (such as education or job experience) increase market value and depreciation (such as unemployment or voluntary absence from work) decreases market value. Polachek argues, on the basis of this theory, that wage depreciation occurs if a person has lower real wages upon returning to employment than he or she had on quitting. In addition, Polachek asserts that some occupations entail greater risks of wage depreciation than others and that women, who are much more likely than men to plan intermittent full-time employment, may choose occupations with low depreciation penalties in order to maximize lifetime earnings. Since most men, on the other hand, plan continuous full-time employment, they can afford to choose occupations that demand consistent maintenance and improvement of skills. Thus, according to Polachek, differences in employment continuity lead to gender differences in the jobs chosen to maximize lifetime earnings, and hence gender segregation in the workplace is a product of rational pecuniary choices made by male and female workers.

Polachek’s thesis, though quite sophisticated, is not supported by empirical evidence. Contrary to Polachek’s prediction, women in predominantly male occupations suffer the same wage depreciation rates as women in predominantly female occupations. These findings tell us that for women the depreciation penalty—the amount by which real wages drop during periods away from employment—is no lower in female- than in maledominated jobs. Nor, as some other economists have proposed, do female-dominated jobs have higher entry-level salaries, though much lower wage-appreciation rates, than male-dominated jobs. Thus, there is no economic advantage to women in choosing female-dominated jobs.

According to the passage, which of the following is true of the majority of female workers?

Most women still work in female-dominated jobs and at lower wages than men typically earn. This phenomenon puzzles supply-side economists, who believe that the demands of the marketplace and the play of self-interest dictate that all inequities in economic status engendered by discrimination must eventually disappear. One of their number, Solomon Polachek, has recently proposed a supply-side explanation for job segregation by gender that emphasizes the depreciation of human capital while one is on leave from work.

This theory posits that human beings are a form of capital: investments (such as education or job experience) increase market value and depreciation (such as unemployment or voluntary absence from work) decreases market value. Polachek argues, on the basis of this theory, that wage depreciation occurs if a person has lower real wages upon returning to employment than he or she had on quitting. In addition, Polachek asserts that some occupations entail greater risks of wage depreciation than others and that women, who are much more likely than men to plan intermittent full-time employment, may choose occupations with low depreciation penalties in order to maximize lifetime earnings. Since most men, on the other hand, plan continuous full-time employment, they can afford to choose occupations that demand consistent maintenance and improvement of skills. Thus, according to Polachek, differences in employment continuity lead to gender differences in the jobs chosen to maximize lifetime earnings, and hence gender segregation in the workplace is a product of rational pecuniary choices made by male and female workers.

Polachek’s thesis, though quite sophisticated, is not supported by empirical evidence. Contrary to Polachek’s prediction, women in predominantly male occupations suffer the same wage depreciation rates as women in predominantly female occupations. These findings tell us that for women the depreciation penalty—the amount by which real wages drop during periods away from employment—is no lower in female- than in maledominated jobs. Nor, as some other economists have proposed, do female-dominated jobs have higher entry-level salaries, though much lower wage-appreciation rates, than male-dominated jobs. Thus, there is no economic advantage to women in choosing female-dominated jobs.

Which of the following best expresses the main idea of the passage?

Most women still work in female-dominated jobs and at lower wages than men typically earn. This phenomenon puzzles supply-side economists, who believe that the demands of the marketplace and the play of self-interest dictate that all inequities in economic status engendered by discrimination must eventually disappear. One of their number, Solomon Polachek, has recently proposed a supply-side explanation for job segregation by gender that emphasizes the depreciation of human capital while one is on leave from work.

This theory posits that human beings are a form of capital: investments (such as education or job experience) increase market value and depreciation (such as unemployment or voluntary absence from work) decreases market value. Polachek argues, on the basis of this theory, that wage depreciation occurs if a person has lower real wages upon returning to employment than he or she had on quitting. In addition, Polachek asserts that some occupations entail greater risks of wage depreciation than others and that women, who are much more likely than men to plan intermittent full-time employment, may choose occupations with low depreciation penalties in order to maximize lifetime earnings. Since most men, on the other hand, plan continuous full-time employment, they can afford to choose occupations that demand consistent maintenance and improvement of skills. Thus, according to Polachek, differences in employment continuity lead to gender differences in the jobs chosen to maximize lifetime earnings, and hence gender segregation in the workplace is a product of rational pecuniary choices made by male and female workers.

Polachek’s thesis, though quite sophisticated, is not supported by empirical evidence. Contrary to Polachek’s prediction, women in predominantly male occupations suffer the same wage depreciation rates as women in predominantly female occupations. These findings tell us that for women the depreciation penalty—the amount by which real wages drop during periods away from employment—is no lower in female- than in maledominated jobs. Nor, as some other economists have proposed, do female-dominated jobs have higher entry-level salaries, though much lower wage-appreciation rates, than male-dominated jobs. Thus, there is no economic advantage to women in choosing female-dominated jobs

According to the passage, some economists have suggested that which of the following is a

characteristic of female-dominated jobs as compared to male-dominated jobs?

The challenge to public health services in economically poor countries lies in providing primary health care to satisfy the minimum health needs of rural populations. Assistance from advanced nations, however, has often adversely influenced the development of health services because most aid programs do not recognize the priorities involved in the health needs of developing countries.

Assistance programs, with their concern for visibility, frequently include ill-adapted showpieces such as large hospitals, advanced technical apparatus, and specialized training in clinical medicine and surgery. In promoting complicated and expensive projects, outside aid programs dissipate local resources and skilled manpower and perpetuate dependency of poorer nations on the advanced nations. Developing countries need to improve their sanitary systems, provide for adequate nutrition, and immunize their people against communicable diseases. Experience has shown that even programs only partially meeting these needs result in a dramatic reduction of infant mortality and an increase in life expectancy.

A crucial factor for the success of such programs is to provide large numbers of minimally trained individuals who can mobilize the self-help capacities of the people and who can maximize the benefits of whatever health resources are available. A pyramidal structure with a wide base of minimally trained workers, covering even rural areas, with referral of more serious cases to progressively more complex medical institutions, leading to an apex of highly specialized medical and surgical facilities, would provide the health care system most appropriate to developing countries.

In training physicians from developing countries, the major error has been the insistence on levels of competence and areas of study relevant to the advanced countries. Both the medical schools and the authorities of the countries that provide such training have failed to recognize that advanced countries have medical needs markedly different from those of developing countries. This has led to a loss of physicians in developing countries because of the frustrations highly skilled physicians feel upon returning to countries that are unable to satisfy their misplaced expectations. The answer lies in promoting medical education in developing countries that is appropriate to the priorities and essential needs of those countries.

According to the passage, a successful medical system in a developing country will have a large number of

The challenge to public health services in economically poor countries lies in providing primary health care to satisfy the minimum health needs of rural populations. Assistance from advanced nations, however, has often adversely influenced the development of health services because most aid programs do not recognize the priorities involved in the health needs of developing countries.

Assistance programs, with their concern for visibility, frequently include ill-adapted showpieces such as large hospitals, advanced technical apparatus, and specialized training in clinical medicine and surgery. In promoting complicated and expensive projects, outside aid programs dissipate local resources and skilled manpower and perpetuate dependency of poorer nations on the advanced nations. Developing countries need to improve their sanitary systems, provide for adequate nutrition, and immunize their people against communicable diseases. Experience has shown that even programs only partially meeting these needs result in a dramatic reduction of infant mortality and an increase in life expectancy.

A crucial factor for the success of such programs is to provide large numbers of minimally trained individuals who can mobilize the self-help capacities of the people and who can maximize the benefits of whatever health resources are available. A pyramidal structure with a wide base of minimally trained workers, covering even rural areas, with referral of more serious cases to progressively more complex medical institutions, leading to an apex of highly specialized medical and surgical facilities, would provide the health care system most appropriate to developing countries.

In training physicians from developing countries, the major error has been the insistence on levels of competence and areas of study relevant to the advanced countries. Both the medical schools and the authorities of the countries that provide such training have failed to recognize that advanced countries have medical needs markedly different from those of developing countries. This has led to a loss of physicians in developing countries because of the frustrations highly skilled physicians feel upon returning to countries that are unable to satisfy their misplaced expectations. The answer lies in promoting medical education in developing countries that is appropriate to the priorities and essential needs of those countries

Which of the following statements, if true, would most seriously undermine the author’s arguments against expensive assistance programs?

The challenge to public health services in economically poor countries lies in providing primary health care to satisfy the minimum health needs of rural populations. Assistance from advanced nations, however, has often adversely influenced the development of health services because most aid programs do not recognize the priorities involved in the health needs of developing countries.

Assistance programs, with their concern for visibility, frequently include ill-adapted showpieces such as large hospitals, advanced technical apparatus, and specialized training in clinical medicine and surgery. In promoting complicated and expensive projects, outside aid programs dissipate local resources and skilled manpower and perpetuate dependency of poorer nations on the advanced nations. Developing countries need to improve their sanitary systems, provide for adequate nutrition, and immunize their people against communicable diseases. Experience has shown that even programs only partially meeting these needs result in a dramatic reduction of infant mortality and an increase in life expectancy.

A crucial factor for the success of such programs is to provide large numbers of minimally trained individuals who can mobilize the self-help capacities of the people and who can maximize the benefits of whatever health resources are available. A pyramidal structure with a wide base of minimally trained workers, covering even rural areas, with referral of more serious cases to progressively more complex medical institutions, leading to an apex of highly specialized medical and surgical facilities, would provide the health care system most appropriate to developing countries.

In training physicians from developing countries, the major error has been the insistence on levels of competence and areas of study relevant to the advanced countries. Both the medical schools and the authorities of the countries that provide such training have failed to recognize that advanced countries have medical needs markedly different from those of developing countries. This has led to a loss of physicians in developing countries because of the frustrations highly skilled physicians feel upon returning to countries that are unable to satisfy their misplaced expectations. The answer lies in promoting medical education in developing countries that is appropriate to the priorities and essential needs of those countries

The author’s statements on infant mortality and life expectancy are apparently supported by evidence that is

Typically managed by small groups such as husband-and-wife teams and characterized by insignificant growth opportunities, lifestyle businesses are far less attractive to outside investors than growth businesses are. Lifestyle businesses mostly expand their capital through debt financing as equity financing is much more difficult for them to attract. Even when equity financing is an option, it is mostly because of the investments made by family and friends in the business. However, outside investors’ lack of relative interest does not indicate that such businesses are not profitable. All it means is that these companies do not necessarily have aspirations of rapid growth in revenue and as such their goals are indicative of their prime aim of sustaining a particular level of income that provides a basis to the founders of such companies to enjoy a particular lifestyle - hence the name, lifestyle business. In fact, in that sense, a lifestyle business doesn’t have to be small at all, either in revenue or employees.

Although lifestyle businesses do share some features with other types of businesses, their success is not dependent on the scalability of their business models, which is an important factor for many investor funded businesses including start-up companies typically founded by close family and friends. Also, the focus of the founders in investor funded businesses is on building the equity value of the company so that they can harvest their investment and labor through the sale of the company in the short term. Whereas, even when the equity value of a lifestyle company is modest, it can continue to provide very high salaries to the founders of the company who can choose to keep it running as long as they want to.

The author implies that which of the following statements about lifestyle businesses is true?

Typically managed by small groups such as husband-and-wife teams and characterized by insignificant growth opportunities, lifestyle businesses are far less attractive to outside investors than growth businesses are. Lifestyle businesses mostly expand their capital through debt financing as equity financing is much more difficult for them to attract. Even when equity financing is an option, it is mostly because of the investments made by family and friends in the business. However, outside investors’ lack of relative interest does not indicate that such businesses are not profitable. All it means is that these companies do not necessarily have aspirations of rapid growth in revenue and as such their goals are indicative of their prime aim of sustaining a particular level of income that provides a basis to the founders of such companies to enjoy a particular lifestyle - hence the name, lifestyle business. In fact, in that sense, a lifestyle business doesn’t have to be small at all, either in revenue or employees.

Although lifestyle businesses do share some features with other types of businesses, their success is not dependent on the scalability of their business models, which is an important factor for many investor funded businesses including start-up companies typically founded by close family and friends. Also, the focus of the founders in investor funded businesses is on building the equity value of the company so that they can harvest their investment and labor through the sale of the company in the short term. Whereas, even when the equity value of a lifestyle company is modest, it can continue to provide very high salaries to the founders of the company who can choose to keep it running as long as they want to.

The author is primarily concerned with

Typically managed by small groups such as husband-and-wife teams and characterized by insignificant growth opportunities, lifestyle businesses are far less attractive to outside investors than growth businesses are. Lifestyle businesses mostly expand their capital through debt financing as equity financing is much more difficult for them to attract. Even when equity financing is an option, it is mostly because of the investments made by family and friends in the business. However, outside investors’ lack of relative interest does not indicate that such businesses are not profitable. All it means is that these companies do not necessarily have aspirations of rapid growth in revenue and as such their goals are indicative of their prime aim of sustaining a particular level of income that provides a basis to the founders of such companies to enjoy a particular lifestyle - hence the name, lifestyle business. In fact, in that sense, a lifestyle business doesn’t have to be small at all, either in revenue or employees.

Although lifestyle businesses do share some features with other types of businesses, their success is not dependent on the scalability of their business models, which is an important factor for many investor funded businesses including start-up companies typically founded by close family and friends. Also, the focus of the founders in investor funded businesses is on building the equity value of the company so that they can harvest their investment and labor through the sale of the company in the short term. Whereas, even when the equity value of a lifestyle company is modest, it can continue to provide very high salaries to the founders of the company who can choose to keep it running as long as they want to.

Which of the following is the function of the final paragraph in the passage?

Typically managed by small groups such as husband-and-wife teams and characterized by insignificant growth opportunities, lifestyle businesses are far less attractive to outside investors than growth businesses are. Lifestyle businesses mostly expand their capital through debt financing as equity financing is much more difficult for them to attract. Even when equity financing is an option, it is mostly because of the investments made by family and friends in the business. However, outside investors’ lack of relative interest does not indicate that such businesses are not profitable. All it means is that these companies do not necessarily have aspirations of rapid growth in revenue and as such their goals are indicative of their prime aim of sustaining a particular level of income that provides a basis to the founders of such companies to enjoy a particular lifestyle - hence the name, lifestyle business. In fact, in that sense, a lifestyle business doesn’t have to be small at all, either in revenue or employees.

Although lifestyle businesses do share some features with other types of businesses, their success is not dependent on the scalability of their business models, which is an important factor for many investor funded businesses including start-up companies typically founded by close family and friends. Also, the focus of the founders in investor funded businesses is on building the equity value of the company so that they can harvest their investment and labor through the sale of the company in the short term. Whereas, even when the equity value of a lifestyle company is modest, it can continue to provide very high salaries to the founders of the company who can choose to keep it running as long as they want to.

Which of the following would the author most likely agree with?