Economists are skeptical that discrimination is employer driven because (i) employers are not really interested in maximizing profit.
(ii) holding productivity constant,a profit-maximizing employer will hire the cheapest labor available.
(iii) discrimination cannot exist in markets.
A)(i) only
B)(ii) only
C)(i) and (ii)
D)(i) and (iii)

Question

Economists are skeptical that discrimination is employer driven because (i)	employers are not really interested in maximizing profit.
(ii)	holding productivity constant,a profit-maximizing employer will hire the cheapest labor available.
(iii)	discrimination cannot exist in markets.
A)(i) only
B)(ii) only
C)(i) and (ii)
D)(i) and (iii)

Quizplus · Accepted Answer

Economists are skeptical that discrimination is employer driven because holding productivity constant, a profit-maximizing employer will hire the cheapest labor available, regardless of demographic factors such as race, gender, or religion. Therefore, answer choice (ii) is the most accurate statement. Answer choice (i) is incorrect as profit maximization is a core goal of most employers. Answer choice (iii) is also incorrect as discrimination can exist in markets, as evidenced by studies showing wage disparities between different demographic groups.

Economists Are Skeptical That Discrimination Is Employer Driven Because (I) Employers