Assume That Workers Are of the Same Race and Either

question 135

Multiple Choice

Assume that workers are of the same race and either male or female.Male and female workers possess the same stock of human capital and hence they are equally productive.The wage rate for male workers is $10 per hour and for female workers the wage rate is $9 per hour.
-Refer to the information above.If Carl and Julia pick city A,then

• A) Julia is the victim of discrimination.
• B) Carl is the benefactor of discrimination.
• C) Julia has compromised her earnings in favour of family earnings.
• D) Julia should feel mistreated by the labour market.
• E) the marriage will not last.

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Definitions:

Diseconomies of Scale

A phenomenon where production costs per unit increase as a firm's output increases, often due to inefficiencies that arise when companies become too large.

Smaller Percentage Increase

Refers to a rate of increase that is less significant or lower in proportion compared to another.

Average Costs

The cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Constant-Cost Industry

An industry in which the cost per unit does not change as the industry's overall output changes.