Assume that the average male wage rate is 20 percent higher than the average female wage rate. One can infer that:
A. customers overvalue male employers, so employers pay males more.
B. this is evidence of discrimination because females should be paid the same as males.
C. this is evidence of discrimination only if all factors affecting productivity are equal.
D. employers undervalue female employees, so they're able to pay them less.
Answer: C
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Consider a coal mining company that can mine coal this year or next year. As expected future profits increase, the extraction quantity this year:
A. Increases due to a higher user cost B. Increases due to a lower user cost C. Decreases due to a higher user cost D. Decreases due to a lower user cost
If there is only one domestic automobile manufacturing firm in a small country, will there be a difference in terms of national economic well-being between using a tariff and using a quota to protect the firm? If so, what is the difference? Clearly explain your answer.
What will be an ideal response?