If One Looks at U

question 2

Multiple Choice

If one looks at U.S. Census data and finds that the average white salary is $39,000 while the average black salary is $36,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

• A) Whites are more inclined than blacks to work part-time.
• B) Blacks have less education than whites.
• C) Discrimination exists in the labor market.
• D) Whites are more likely than blacks to hold positions in upper management.
• E) Whites are more likely than blacks to own their own business.

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Definitions:

Unemployment Tax Rate

A tax rate assigned to an employer, based on the number of unemployment claims filed by former employees, which funds unemployment compensation programs.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Gross Payroll

The total amount an employer pays to its employees before deductions, such as taxes and retirement contributions, are made.

Federal Unemployment Compensation Tax

A federal tax imposed on employers to fund state workforce agencies and unemployment insurance.