Suppose That Firms Can Hire Whites for $10 an Hour

question 257

Multiple Choice

Suppose that firms can hire whites for $10 an hour or equally productive blacks for $8 an hour. Which of the following is the most likely hiring practice for most firms?

• A) All firms would follow the wage rates paid for respective white and black.
• B) Firms that want to minimize cost would prefer to hire whites.
• C) Firms that want to maximize profit would prefer to hire blacks.
• D) All firms would hire an equal number of white and black workers.

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Definitions:

Dominant Trait

A genetic trait that is expressed in an organism even when only one copy of the gene responsible for the trait is present.

CFTR Gene

A gene that provides instructions for making a protein that acts as a channel for the movement of chloride ions across cell membranes, mutations of which can lead to cystic fibrosis.

Chloride Ions

Negatively charged ions (Cl-) that are typically found in extracellular fluid and play critical roles in the body's electrolyte balance.

Epithelial Cells

Cells that cover the surfaces of the body and its organs, serving as a protective barrier and involved in absorption and secretion.