Explain how a business owner who continually practices taste-based discrimination may eventually pay for his decision to discriminate in terms of declining productivity and profits, especially if he is in a highly competitive industry
What will be an ideal response?
If a person who practices taste-based discrimination hires less-productive people due to the discrimination, the lesser amount of productivity will result in lower profits. If the industry is highly competitive and the competitors do not practice taste-based discrimination, some of those people not hired by the discriminating employer may end up working for a competitor, and their higher levels of productivity will make the competitor even more competitive and productive, doing further harm in terms of competitiveness and profit to the discriminating employer.
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Banks in Richland charge an interest rate of 4% for overnight loans to each other. How will this rate change if the central bank of Richland engages in open market operations to purchase bonds?
What will be an ideal response?
The price elasticity of demand measures consumer responsiveness to a price change
a. True b. False Indicate whether the statement is true or false
Movement along the aggregate expenditure line is caused by a change in the level of income
a. True b. False Indicate whether the statement is true or false
Income tax payments
a. fall during periods of prosperity, thus reducing inflationary pressures b. fall during periods of prosperity, thus increasing inflationary pressures c. rise during periods of prosperity, thus reducing inflationary pressures d. fall during recessions, thus increasing the problem of unemployment e. rise during recessions, thus increasing the problem of unemployment