The figure given below shows the income-leisure trade off of an individual.Figure 16.5
AB and AC: Income constraints of the individual
I 1 , I 2 , and I 3 curves show the income leisure choices of the individual.
-Which of the following is an instance of employer prejudice that leads to wage differential?

Question

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
  AB and AC: Income constraints of the individual
I 1 , I 2 , and I 3 curves show the income leisure choices of the individual.
-Which of the following is an instance of employer prejudice that leads to wage differential?

Quizplus · Accepted Answer

Employer prejudice that leads to wage differential occurs when employers attempt to hire workers based on irrelevant personal characteristics such as gender, race, or ethnicity. In this case, the employer is only attempting to hire male workers, which is an example of gender-based discrimination. This leads to a wage differential between male and female workers even if they have the same qualifications and productivity levels. Options A, C, D, and E are not related to employer prejudice and wage differentials.

The Figure Given Below Shows the Income-Leisure Trade Off of an Individual.Figure