Why Would a Wage Differential Due to Discrimination in Hiring

question 48

Multiple Choice

Why would a wage differential due to discrimination in hiring 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 markets.

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Definitions:

Dissociates

In a legal context, refers to a partner's withdrawal or a member's departure from a partnership or an association, affecting the entity's composition.

Novation Agreement

A legal contract that creates a new obligation to replace an existing one, with the agreement of all parties involved.

Statement of Dissociation

A formal declaration that a partner is no longer associated with a partnership's activities.

Limited Liability Partnership

A business structure that protects its partners from personal liability for certain partnership debts and obligations.