Politicians Often Point to Wage Differentials as Evidence of Labor-Market

question 323

True/False

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however,economists argue against this approach because people differ in the kinds of work they are willing and able to do.

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Definitions:

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Equity Financed

The method of funding a business through selling shares of the company to investors, thus raising capital without incurring debt.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in calculating the weighted average cost of capital.

Cost of Debt

The effective rate that a company pays on its current debt, incorporating both interest payments and issuance costs.