Economists Are Skeptical That Discrimination Is Employer Driven Because

question 350

Multiple Choice

Economists are skeptical that discrimination is employer driven because

• A)discrimination cannot exist in markets.
• B)employers are not really interested in maximizing profit.
• C)employers typically base wages paid on the prevailing market wage.
• D)holding productivity constant, a profit-maximizing employer will hire the cheapest labor available.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculating an annual growth rate.

Profitability Index

A fiscal indicator that evaluates an investment's comparative profitability by calculating the ratio of the present value of future cash inflows to the upfront cost of the investment.

Present Value

The immediate worth of a future financial amount or sequences of cash flows, using a specified rate of return for calculation.

Invested Costs

Costs that have already been incurred for a project or investment.