Which of the following is true?
A) Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity).
B) If employers can hire equally productive female employees at a lower wage than males, the profit motive gives them a strong incentive to do so.
C) The female/male earnings ratio is higher for persons who are married than for those who remain single.
D) Both a and c are true.

Question

Quizplus · Accepted Answer

This statement is consistent with economic theory, which suggests that if employers can hire equally productive female employees at a lower wage than males, the profit motive gives them a strong incentive to do so. Discriminating against women in hiring and pay can lead to a loss of talent and the risk of litigation, which would be costly to a firm's reputation and finances. Option A is false because discrimination is illegal in many jurisdictions, and firms that engage in such practices are subject to legal penalties and regulation. Option C is also incorrect because studies have shown that the female/male earnings ratio is lower for married women than for single women, and may be more attributable to the effect of motherhood and gender roles on women's labor force participation and wages.

Which of the Following Is True