Which of the following about employment discrimination is true?
a. Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of productivity.
b. After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of white men.
c. If minority and white employees in a skill category are equally productive, the profit motive provides employers with a strong incentive to hire minority employees if they are available at a lower wage.
d. The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of worker preference.
C
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A hypothesis is an assertion that can be:
A) proven to be false. B) proven to be true. C) proven to be true or false. D) tested only in the normative sense.
Which one of the following will shift the consumption function upward?
a. Higher interest rates. b. Expectations that the economy will grow in the future. c. A decrease in money holdings. d. Higher capacity utilization rates. e. A tax increase.