Which of the Following Is True

question 210

Multiple Choice

Which of the following is true?

• A) Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity).
• B) If employers can hire equally productive female employees at a lower wage than males, the profit motive gives them a strong incentive to do so.
• C) The female/male earnings ratio is higher for persons who are married than for those who remain single.
• D) Both a and c are true.

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Definitions:

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, often leading to imbalances in decision making and potentially unfair outcomes.

Pollution Abatement

The reduction or elimination of pollutants released into the environment, often through regulatory policies or technology changes.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, aiming to correct an inefficient market outcome by increasing the cost to include the external costs.

CFCs

Chlorofluorocarbons; chemical compounds used in aerosol sprays and refrigerants that have been found to deplete the ozone layer.