It Is Argued That Competitive Markets Provide a "Natural Remedy

question 348

Multiple Choice

It is argued that competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the potency of that natural remedy?

• A)Governments sometimes mandate discriminatory practices.
• B)Some employees have a lot of job experience; others have little job experience.
• C)In a discriminatory environment, a competitive firm that takes prices and wages as given has nothing to gain from any particular choice it makes regarding who to hire or which customers to serve.
• D)Not all firms exhibit social responsibility in sufficient measure to counter discriminatory wage practices.

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Definitions:

Need For Power

A psychological drive that compels individuals to seek control or influence over others, or to seek positions of authority.

Psychological Factors

Elements that influence an individual's mental state and behavior, including emotions, attitudes, and thoughts.

Stress

The body's response to any demand or challenge, which can be triggered by physical, mental, or emotional factors.

Frustration

The feeling of being upset or annoyed as a result of being unable to change or achieve something.