One reason that wage discrimination based on gender or ethnicity could continue is:
A)the existence of higher than equilibrium wages due to market interference or market failure.
B)market competition makes it profitable to engage in discrimination.
C)it is justified by the marginal productivity theory of income distribution.
D)the South African experience with apartheid showed that discrimination led to more rapid economic growth.

Question

Quizplus · Accepted Answer

Market interference or market failure can lead to wages being set higher than equilibrium, which can mask discriminatory practices. For example, if there is a shortage of workers in a certain field, employers may be willing to pay higher wages to attract workers regardless of gender or ethnicity, but this does not necessarily mean that there is no discrimination taking place in the hiring and promotion process.

One Reason That Wage Discrimination Based on Gender or Ethnicity