Define labor market discrimination. How much of the differences in the earnings of workers are explained by discrimination?
What will be an ideal response?
Discrimination in labor markets occurs when equivalent labor resources that make equal productive contributions are given different pay or treatment. About half of the differences in earning can be explained by nondiscriminatory factors. The other half of the difference is unexplained, but a good portion of it can be attributed to factors related to discrimination.
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The table above shows the PPF of an island community. Choose the best statement
A. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff. B. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient. C. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch. D. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
A firm will shut down in the short run if
a. P < AVC. b. P > AVC. c. AVC > AFC. d. TR > TC.