“Job discrimination may actually result from rational decision making on the part of firms and not because of prejudice.” Explain this statement
What will be an ideal response?
Discrimination may actually be the result of firms making rational, profit-maximizing decisions. Firms do this through the practice of statistical discrimination, or the use of statistical evidence of a certain group to determine future job performance. Firms might be hesitant to hire women or minorities due to certain group-wide performance. For example, the absence of successful women in the sciences may make certain employers concerned that women may not have the skill set necessary to succeed. Ultimately, firms make these estimations in an effort to hire the best employee possible and not out of prejudice, although it ultimately impacts women and minority groups negatively.
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Assume the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market
A) the supply curve will shift to the left and the equilibrium price will increase. B) the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease. C) the demand curve will shift to the left and the equilibrium price will decrease. D) the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase.
An open-market purchase by the Federal Reserve injects excess reserves into the banking system and allows the money supply to expand
a. True b. False Indicate whether the statement is true or false
Of the following markets, which is most likely to be monopolistically competitive?
a. automobiles b. corn c. overnight package delivery d. air travel between a small city and a larger one e. fast food
One of the main reasons some central banks set target inflation rates is to ______.
a. increase productivity b. simplify fiscal policy c. foster greater price stability d. boost investment from abroad