Assume That Workers Are of the Same Race and Either

question 83

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.Instead of assuming of that male and female workers have the same stock of human capital,suppose that male workers have a larger stock: precisely $1 worth.Then one would predict

• A) the female wage rate will rise.
• B) the firms that hire female workers will drive the firms that hire only male workers out of business.
• C) the wage gap will narrow.
• D) the firms that hire male workers have lower profits or larger losses.
• E) no change in either wage because hiring male workers no longer expresses an arbitrary preference.

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Definitions:

Closely Linked

Having a very strong relationship or connection between two or more things.

Doctrine

A belief or set of beliefs held and taught by a church, political party, or other group.

Violent Methods

Approaches or actions that involve physical force intended to hurt, damage, or kill someone or something.

Shark-Infested Waters

Used metaphorically to describe a situation full of dangers and risks, or, literally, waters that have a high population of sharks.