Briefly explain how differences in human capital may be the result of discrimination. Give an example.
What will be an ideal response?
Student examples will vary. A sample answer follows: The differences in human
capital may be a result of discrimination. Historically, females have had less access to
rigorous academic curriculum and black students have had inferior educational
experiences with a lot fewer resources. While these have economic implications now
they may have had their origins shaped through the political process years ago. For
example, Monique grew up in a poor neighborhood of Chicago and attended schools
with old textbooks and few extracurricular programs. Although she was intelligent, her
inferior education prevented her from being admitted to a good university. Instead,
because she was ambitious, she took courses at a city college. This educational disparity will cause her to have a harder time getting a good entry-level job, which in
turn may cause her career advancement to lag behind people of the same age who
attended prestigious universities, gaining better skills and forming more helpful
networks.
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A bank failure occurs whenever
A) a bank cannot satisfy its obligations to pay its depositors and other creditors. B) a bank suffers a large deposit outflow. C) a bank has to call in a large volume of loans. D) a bank refuses to make new loans.
Perfect competition and monopolistic competition are similar in that firms in both types of market structure will
A) act as price takers. B) produce a level of output where price equals marginal cost. C) earn zero profit in the long run. D) act as price setters.
Refer to Table 5.1 and determine which of the following answers is correct.
A. The missing values are MPL(L=2)=45, MPL(L=3)=29, APL(L=2)=45, and APL(L=4)=13. B. The missing values are MPL(L=2)=45, MPL(L=3)=29, APL(L=2)=35, and APL(L=4)=28. C. The missing values are MPL(L=2)=45, MPL(L=3)=29, APL(L=2)=35, and APL(L=4)=13. D. The missing values are MPL(L=2)=35, MPL(L=3)=33, APL(L=2)=35, and APL(L=4)=28.
A review of economic data suggests that:
A. over the last fifty years, recessions are becoming more common. B. business cycles are recurrent and periodic. C. recessions are shorter in duration than expansions. D. expansions are shorter than recessions.