Which of the Following Is a Reason Why It Is

question 241

Multiple Choice

Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?

• A)Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.
• B)Ultimately, employers who discriminate cannot remain profitable.
• C)Employers who discriminate pay an economic penalty.
• D)Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences.

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Definitions:

Implicit Costs

Additional costs that do not appear on the financial statements of a company. These costs include items such as the opportunity cost of capital.

Economic Profits

Profits that exceed the opportunity costs of all resources used by the firm, including both explicit and implicit costs.

Sunk Costs

Costs that cannot be recovered. They are unavoidable even in the long run.

Economic Environment

The economic environment consists of all the external economic factors that influence buying habits, business operations, and growth prospects of entities.