The removal of legal barriers alone may not be sufficient to eliminate the pay gap between whites and blacks because the increased competition may not be able to overcome
A. customer preferences that lead employers to discriminate.
B. the wide gap in pay.
C. employer preferences to discriminate.
D. employer preferences to discriminate and customer preferences that lead employers to discriminate.
Answer: D
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Exhibit 30-5
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In the classical model, taxes and spending are treated as two separate variables
a. True b. False
In the long run, the price level in an economy is determined solely by:
a. the aggregate demand curve. b. the amount of cyclical unemployment in the economy. c. the long-run aggregate supply curve. d. the short-run aggregate supply curve. e. the actual output level.
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W1 and the firm is initially at Point B. Labor supply increases from S1 to S0. The firm?s MRPL curve will shift from MRPL at K2 to MRPL at K1 because
A. the firm is no longer maximizing profits. B. the output effect led to ann increase in the demand for capital, which in turn increased the productivity of labor. C. the supply of labor increased and therefore the productivity of labor increased. D. the factor substitution effect will cause the firm to substitute capital for the lower-priced labor.