The competitive labor market model suggests that the persistence of significant employer discrimination requires the owners of the firm to
A. engage in collusion.
B. hire a quantity of labor in which VMPL exceeds the wage rate.
C. supply capital at a rate of return below what could be earned elsewhere.
D. supply capital at a rate of return higher than what they could earn by investing their money elsewhere.
Answer: C
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Aggregate demand increases if the quantity of money ________
A) decreases or tax rates increase B) or transfer payments decrease C) remains constant or tax rates increase D) increases or tax rates decrease
To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency, the Federal Reserve could
A) raise government spending. B) sell Treasury securities. C) raise bank taxes. D) lower the required reserve ratio.
What best describes the antebellum economy?
a. By 1860 the size of most American firms was comparable to the size of firms today. b. Manufacturing had replaced agriculture as the largest sector of employment in the US. c. Heavy equipment was one of the top-three manufacturing sectors. d. The U.S. developed many new ways of combining factors of production to substitute capital for labor.
Jennifer learns that the price of CDs will be going up 10 percent next week. She usually buys three CDs per week. What happens to Jennifer's demand for CDs this week?
a. It does not change because only quantity demanded changes when price changes. b. It increases because the price will be lower next week. c. It decreases because the price will be higher next week. d. It increases because the price will be higher next week. e. It decreases because the price will be lower next week.