Labour- Market Discrimination,which Keeps One Group of Workers Out of Elite

question 68

Multiple Choice

Labour- market discrimination,which keeps one group of workers out of elite (E) occupations and limits them to ordinary (O) occupations,will have which of the following effects?

• A)an increase in supply and lower wages in the O occupations
• B)a decrease in supply and lower wages in the O occupations
• C)a decrease in supply and lower wages in the E occupations
• D)an increase in supply and higher wages in the E occupations
• E)an increase in supply and lower wages in the E occupations

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Definitions:

Rational Choice

A theory in economics that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Costs and Benefits

An analysis approach that compares the total costs and total benefits associated with a particular action or decision to determine its feasibility or worth.

Predictable Ways

Methods or patterns that can be anticipated or expected based on previous observations or known properties.

Incentives Matter

A principle that highlights the importance of rewards and penalties in influencing human behaviour and decisions in economics.