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:

Organizational Hierarchy

The arrangement of individuals within an organization according to power, status, and job functions, creating a structured chain of command.

Company's Product

Goods or services offered by a company to its customers, representing the output of the company's business activities.

Weight-to-Volume Ratio

A measurement indicating how much weight occupies a certain volume, important in fields like shipping and material science.

Value-to-Weight Ratio

A measure that compares the value of a product to its weight, often used in shipping and trade to determine the cost-effectiveness of transporting goods.