How might competition eradicate discrimination? Historically, has this been observed?
What will be an ideal response?
Some argue that competition will remove the presence of discrimination in the labor market. They say that nondiscrimination firms will take advantage of the wage differential between whites and men and women and minority groups, allowing them to produce at lower cost than the prejudicial firms. This will eventually push discriminating firms out of business and discrimination will be erased from the market system.
Historically, however, competition has not appeared to remove discrimination, as it has persisted over the decades. Critics argue that competition proponents underestimate the barriers to entry and the failure in both the U.S. and market economies to reduce discrimination.
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The monopolist is always constrained by:
A. the amount demanders are willing to buy at any given price. B. his production capacity. C. the barriers to entry. D. government regulation.
Which of the following is true of the short-run aggregate supply curve?
a. It shows the relation between the inflation rate and the quantity of aggregate output firms supply, other things constant. b. It shows the relation between the price of labor and the aggregate quantity of labor workers supply, other things constant. c. It shows the relation between the interest rate and the quantity of capital goods firms supply, other things constant. d. It shows the relation between the price level and the quantity of aggregate output firms supply, other things constant. e. It shows an inverse relationship between the price level and real GDP.
Scarcity is a problem in economics because it means that
a. all economies will be poor b. we cannot produce all the goods we want c. consumers will not be able to consume all of the goods that producers have the capacity to produce d. we cannot produce all the food we would want e. the economy cannot improve its peoples' standard of living
A depreciation of the currency can switch spending away from foreign goods and reduce the effect of rising incomes on the current account
Indicate whether the statement is true or false