Explain the negative long-term effects that statistical discrimination in the labor market can have on the incentives to invest in education and skills
What will be an ideal response?
If, despite being better qualified, someone loses a job to someone else due to statistical discrimination, and this continues because statistical discrimination is a profitable strategy, a message is being sent that it does not matter that someone has invested in his education and skills. This, in turn, sends the same message to the people around the individual who has been discriminated against, and leaves the impression that education and skills are not worth acquiring, which leaves those people less productive and less desirable as employees, resulting in a downward spiral.
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Economic profits differ from accounting profits because ________
A) the former is calculated by economists and the latter by accountants B) many firms own their own capital so accounting profits do not factor this cost C) most firms report economic profits once a year and accounting profits every pay period D) all of the above E) none of the above
Holding other things constant, a decrease in the inflation rate in the US compared to the Canadian economy will cause the demand for the Canadian dollar to _____________ and the supply to __________
a. Increase; decrease b. Increase, increase c. Decrease; Increase d. Decrease; Decrease
Which of the following is an asset for both a bank and a central bank?
A) currency B) deposits C) bonds D) all of the above E) none of the above
Which of the following is the situation in which a nation shifts its international trade from nations outside a regional trade bloc to nations within the bloc?
A. trade deflection B. trade retention C. protectionism D. trade diversion