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.

---

Definitions:

Tree

A perennial plant with an elongated stem, or trunk, supporting branches and leaves, in most species.

Proximity

The state, quality, or fact of being close or near in space, time, or relationship.

Complementarity

A concept in relationships that suggests a higher degree of satisfaction when partners' characteristics or behaviors complement each other well.

Reciprocity

A social rule where if someone gives you something, you feel an obligation to give something back.