If a Firm Refuses to Hire Any Minorities Due to a Personal

question 53

Multiple Choice

If a firm refuses to hire any minorities due to a personal prejudice, its profits

• A) will increase markedly.
• B) will decrease.
• C) will not be affected.
• D) will increase slightly.

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Definitions:

Production

The process of creating goods and services through the combination of labor, capital, and resources.

Economic Profit

A measure of profit that includes recognition of implicit costs (like the cost of equity capital). Economic profit measures the true profitability of decisions.

Savings Account

A deposit account held at a bank or financial institution that pays interest but typically has limited withdrawal options.

Annual Interest

The amount of interest due per year as a percentage of the amount lent, deposited, or borrowed.