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Consider a Labor Market in Which Employers Discriminate Against African

Question 51

Multiple Choice

Consider a labor market in which employers discriminate against African Americans. Comparing the labor market equilibrium with no discrimination to the equilibrium with discrimination,


A) The African American wage rate is higher without discrimination than with discrimination.
B) The number of African American workers hired is lower without discrimination than with discrimination.
C) The white wage rate is higher without discrimination than with discrimination.
D) The African American wage rate and the white wage rate are equal with and without discrimination; only the number of workers differs.

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