Suppose the Market Wage Rate for Whites Is $18 an Hour

question 135

Multiple Choice

Suppose the market wage rate for whites is $18 an hour and the monetary value a prejudiced employer attaches to the disutility of hiring African Americans is $3. This employer will be indifferent between hiring African Americans and whites only when the African-American wage rate is

• A) $3.
• B) $12.
• C) $15.
• D) $21.

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Definitions:

Bad Faith

Deliberate deceit or a refusal to fulfill one's obligations or agreements, often implying a dishonest intent.

Sale of Goods Act

refers to a statutory framework that regulates the sale and purchase of goods, setting out the rights and duties of both buyers and sellers.

Traded Goods

Goods that are bought and sold in domestic or international markets. These can range from raw materials to finished products.

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Laws and regulations designed to ensure the rights of consumers are protected, as well as to provide consumers with the means for redress in situations where their rights have been violated by businesses or manufacturers.