Why Would a Wage Differential Due to Discrimination Be Unlikely

question 294

Multiple Choice

Why would a wage differential due to discrimination be unlikely to persist in a competitive labor market?

• A) There is a cost advantage for firms that do not discriminate.
• B) Workers who are victims of discrimination will eventually drop out of the labor market.
• C) Competing firms will hire fewer of the workers who are temporarily victimized by discrimination.
• D) Discrimination cannot exist in makets.

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Definitions:

Revenue Recognition

The process of recording income when it is earned and realizable, according to specific criteria, regardless of when the cash is received.

Completed-Contract Method

An accounting method where revenue and profit are recognized only when a contract is completed, commonly used in long-term project contracts.

Long-Term Contracts

Agreements that specify performance obligations and financial terms for periods typically longer than one year.

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term projects proportionally to the work completed.