Assume Xs Earn $3 Less Per Hour Than Ys and a Firm

question 221

Multiple Choice

Assume Xs earn $3 less per hour than Ys and a firm employs 300 workers. There are 8 working hours in the day, 5 working days a week, and 50 working weeks a year. If the firm discriminates and hires only Ys, how much profit will it lose in a year? (Assume Xs have the same work skills as Ys.)

• A) $1,800,000
• B) $36,000
• C) $7,200
• D) $600,000

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Definitions:

Union Density Rate

The percentage of workers in a specific area or industry that are members of labor unions.

Voluntarism

The principle or system in which voluntariness is the basis for actions and decisions in an economic or other social system.

Government Policies

Actions or strategies formulated by a government to tackle economic, social, or political issues affecting the country.

Employer Demands

Specific conditions or changes employers seek from employees or unions during negotiations or bargaining processes.