Assume whites and blacks are equally productive. The going wage for whites is $16 per hour, while the going wage for blacks is $10 per hour. Which of the following will characterize the labor market equilibrium when some employers have discriminatory preferences against hiring black workers?
A) All discriminating employers will hire only whites.
B) All firms will earn the same amount of profit regardless of their discriminatory preferences.
C) Any employer with a discrimination coefficient greater than 0.6 will hire only white workers.
D) Any employer with a discrimination coefficient greater than 1.6 will hire only black workers.
E) Any employer with a positive discrimination coefficient will hire only white workers.
Correct Answer:
Verified
Q1: Which of the following causes a difference
Q3: In the standard Becker model of discrimination,
Q5: What is the main theoretical implication regarding
Q6: Customer discrimination results in
A)lower wages for the
Q7: Over the last 30 years in the
Q9: In a discrimination model, nepotism is best
Q10: Which one of the following statements concerning
Q11: There is a restaurant that employs only
Q14: Economic theory suggests that discriminating employers will
Q15: Which of the following statements regarding gender
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents