Assume That Workers Are of the Same Race and Either

question 109

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 is $10 per hour for male workers and $9 per hour for female workers.
-Refer to the information above.Firm A practices employer discrimination and hires only male workers while Firm B is willing to hire either gender.If both firms need to hire 10 workers then

• A) firms A and B will have the same labour costs.
• B) firm A's labour cost will be higher,but so will productivity.
• C) firm B's labour cost will be lower,but so will productivity.
• D) firm B's labour cost will be lower,and productivity will be the same.
• E) firm B will hire a mixture of male and female workers.

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Definitions:

Social Affiliation

The act of connecting or associating with others in a social context, forming relationships or bonds.

Bonding

The process of developing a close and emotional relationship between individuals, such as between parents and their newborn.

Friends

Individuals with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.

Age

The length of time that a person or object has been alive or in existence.