Why Would a Wage Differential Due to Discrimination Be Unlikely

question 232

Multiple Choice

Why would a wage differential due to discrimination be unlikely to persist in a competitive labor market?

• A) There is a cost advantage for firms that do not discriminate.
• B) Workers who are victims of discrimination will eventually drop out of the labor market.
• C) Competing firms will hire fewer of the workers who are temporarily victimized by discrimination.
• D) Discrimination cannot exist in markets.

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Definitions:

South Carolina

A state in the Southeastern United States, known for its role in the early history of the U.S., including being the first state to secede from the Union before the Civil War.

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A cultural and intellectual movement in Europe during the 17th and 18th centuries that emphasized reason, individualism, and skepticism of traditional doctrines.