When Comparisons Are Made Between the Earnings of Whites and Minorities

question 79

Multiple Choice

When comparisons are made between the earnings of whites and minorities with the same age, quantity of schooling, marital status, sector of employment, union and industry status, regional location, and annual hours worked, recent studies indicate that

• A) the corrected earnings of minority men are about two-thirds the earnings of white men.
• B) earnings differentials between whites and minorities are due almost exclusively to employment discrimination.
• C) the corrected earnings of Mexican-Americans, Asian-Americans, and American Indians were between 7 and 9 percent less than the earnings of similar white men.
• D) most minority men now have higher earnings than white men.

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Definitions:

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.

Economic Profit

The discrepancy between a company's complete income and its aggregate expenditures, covering both out-of-pocket and assumed costs.

Purely Competitive

A market structure characterized by a large number of sellers offering identical products, with easy market entry and exit and no single seller controlling market prices.

Differentiated Product

A merchandise unique from its rivals due to its superior quality, distinctive features, or branding.