Explain in each of the following situations how market forces might give a business an incentive to act in a less discriminatory fashion. a. A local flower delivery business run by a bigoted white owner notices that many of its local customers are black. b. An assembly line has traditionally only hired men, but it is having a hard time hiring sufficiently qualified workers. c. A biased owner of a firm that provides home health care services would like to pay lower wages to Hispanic workers than to other employees.
Added by Gary G.
Step 1
By being more inclusive and non-discriminatory, the business can increase its customer base and ultimately improve its profits. ** Show more…
Show all steps
Your feedback will help us improve your experience
Md.Daniyal Arshad and 67 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Discrimination occurs when disadvantaged groups like women or African-Americans are segmented into low-wage markets. Explain how each of the following practices, which prevailed in some cases until recently, helped perpetuate discriminatory labor market segmentation: a. Many state schools would not allow women to major in engineering. b. Many top colleges would not admit women. c. Nonwhites and whites received schooling in separate school systems. d. Elite social clubs would not admit women, AfricanAmericans, or Catholics. e. Employers refused to hire workers who had attended inner-city schools because the average productivities of workers from those schools were low.
Prashant B.
In Becker's discrimination model, employers who are prejudiced a. have a discrimination coefficient d = 0. b. be driven out of business in the long run in a competitive market. c. have an integrated workforce, but disliked workers will hold jobs that do not involve customer contact. d. always employ their preferred workers, even if disliked workers are willing to work for a lower wage. e. have an integrated workforce, but workers will have to be paid a higher wage.
Jennifer S.
Explain whether each of the following events will increase, decrease, or have no effect on long-run aggregate supply. a. The United States experiences a wave of immigration. b. Congress raises the minimum wage to $15 per hour. c. Intel invents a new and more powerful computer chip. d. A severe hurricane damages factories along the East Coast.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD