In What Way Do Competitive Markets Have a "Natural Remedy

question 377

Multiple Choice

In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?

• A)Governments regulate to resolve problems of discrimination.
• B)Profit-maximizing firms that do not discriminate tend to replace firms that discriminate.
• C)Wages paid to groups that are victimized by discrimination are eventually bid up to above-equilibrium levels.
• D)Discrimination is usually the outcome of rational decision-making processes, and competitive markets produce rational outcomes.

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Definitions:

RUPA

Refers to the Revised Uniform Partnership Act, which is a set of laws adopted by some U.S. states to govern the formation, operation, and dissolution of partnerships.

Duty Of Loyalty

The legal obligation of individuals, such as corporate directors or employees, to act in the best interests of their company or employer.

Statute Of Frauds

A legal principle that requires certain types of contracts to be in writing to be enforceable.

Formation

The process of creating or establishing a new business, organization, or legal entity.