Which of the Following Statements Is Not Correct

question 265

Multiple Choice

Which of the following statements is not correct?

• A)Competitive markets tend to limit the impact of discrimination on wages.
• B)Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination.
• C)Some differences in earnings are attributable to discrimination based on race, sex, or other factors.
• D)Profit-maximizing behavior can reduce discriminatory wage differentials.

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Definitions:

Budget Constraint

The limit on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Inferior Good

A type of good for which demand decreases as the consumer's income increases, contrasting with normal goods.

Less Durable

Describes goods or products that have a shorter usable lifespan before they degrade, wear out, or become obsolete.

Inferior Goods

Products whose demand decreases as the income of consumers increases, due to the availability of better or more desirable alternatives.