Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why?
A. The government mandates that the employer not act on his or her desire to discriminate.
B. A competitive output market requires all workers to be paid the same wage.
C. Workers will refuse to work for a discriminating employer.
D. Customers will refuse to purchase from a discriminating employer.
E. Discrimination imposes an additional cost on the employer, and high-cost firms are eventually driven out of a competitive output market.
Answer: E
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A basic principle in management is that where there is risk, there is ________
a. Opportunity b. Reliability c. Decision making d. Extenuating circumstances
A possible explanation for the persistence of the U.S. federal budget deficits is that: a. it is easier politically to increase government spending than to decrease taxes. b. it is easier politically to decrease government spending than to decrease taxes. c. it is easier politically to increase government spending than to increase taxes. d. the economy naturally tends toward recessions
e. the economy naturally tends toward full employment.
As interest rates rise, a firm would
A. have increasing present value of expected earning. B. have lower expected costs of investment. C. be willing to pay less now to purchase the same number of future dollars. D. be willing to pay more now to purchase the same number of future dollars.
Monopolistic competition is characterized by excess capacity because:
A. Firms are always profitable in the long run B. Firms charge a price that is greater than marginal cost C. Firms produce at an output level less than the least-cost output D. The demand for a product is perfectly elastic in this type of industry