In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?
a. Governments regulate to resolve problems of discrimination.
b. Profit-maximizing firms that do not discriminate tend to replace firms that discriminate.
c. Wages paid to groups that are victimized by discrimination are eventually bid up to above-equilibrium levels.
d. Discrimination is usually the outcome of rational decision-making processes, and competitive markets produce rational outcomes.
b
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A consumer's total transportation cost includes all of the following except which one?
A) the value of the consumer's time deciding which store to travel to B) the cost of a subway ticket to the store C) the value of the consumer's time spent in the store D) the value of the consumer's time spent getting to and from the store
The banking industry is heavily regulated because
a. banking is a monopoly industry. b. most banks are owned by government agencies. c. bankers do what is best for their stockholders, not necessarily what is best for the economy. d. All of the above are correct.
The effect on the market for heating oil of a leftward shift of supply would be
A. a shortage of heating oil. B. a surplus of heating oil. C. a decrease in the quantity of heating oil sold and in its price. D. an increase in the price of heating oil and a decrease in the quantity sold.
If the equation y = -10 + 2.5x was plotted:
A. the vertical intercept would be -10. B. the slope would be -7.5. C. it would graph as a downsloping line. D. the slope would be -10.