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A Labor Market Is Divided into Two Segments

Question 69

Multiple Choice

A labor market is divided into two segments.All workers have the same qualifications and find jobs in either segment equally attractive.Initially,both segments are in competitive equilibrium.Then the development of employer prejudice reduces employment of minorities in one segment.In the long run,there will likely be a change in


A) wage rates and the composition of the work force in both segments
B) neither wage rates nor the composition of the work force in either segments
C) wage rates,but not the composition of the work force,in both segments
D) the composition of the work force,but not wage rates,in both segments
E) the wage rate,but not the composition of work force,in the discriminating segment only

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