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:

Homogenization

The process of making things uniform or similar by blending disparate elements, often used in cultural, biological, and industrial contexts to describe the reduction of diversity.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence of the world's economies, cultures, and populations.

Modernization Theory

A model of economic and social development that explains global inequality in terms of technological and cultural differences between nations.