Compared to Hiring a White Worker, an Employer Is $5

question 24

Multiple Choice

Compared to hiring a white worker, an employer is $5 less happy when he hires a black worker and is $6 less happy when he hires a Hispanic worker. The firm faces hourly wage rates of $20 for whites, $16 for blacks, and $14 for Hispanics. Which of the following describes the firm's hiring decision?

• A)The firm hires all white workers.
• B)The firm hires all black workers.
• C)The firm hires all Hispanic workers.
• D)The firm hires a mixture of white and black workers.
• E)The firm hires a mixture of white and Hispanic workers.

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Definitions:

Insider Trading

The trading of a public company's stock or other securities by individuals with access to non-public, material information about the company.

Stakeholder Theory

A theory in corporate governance and business ethics that addresses the morals and values in managing an organization, emphasizing the importance of all stakeholders.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public by practicing ethical and sustainable ways in operations and decision-making.

Rights Theory

A framework focusing on the entitlements individuals have, based on moral or legal principles, which should not be infringed upon by others.