Suppose a firm pays white workers $40 an hour but pays black workers who are as productive as the white workers $25 an hour.
A) This firm could increase profits by hiring more black workers at $25 and using fewer white workers.
B) This firm is practicing statistical discrimination.
C) This firm is a profit maximizer because it is saving money on the hiring of black workers.
D) This is an example of employer discrimination, which means that the wage differentials are likely to not be competed away.
Correct Answer:
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Q142: Which of the following is an example
Q143: If employers discriminate against redheads:
A) it won't
Q144: Which of the following statements is TRUE?
A)
Q145: Customer-based discrimination is weakened by:
A) higher wages.
B)
Q146: Discrimination by customers:
A) means that there will
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Q152: Discrimination by employers:
A) tends to break down
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