Which of the following statements regarding discrimination is true ?
Correct answer: B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination
- A. The existence of a wage differential among groups is strong evidence of discrimination in the labour market
- B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination
- C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market
- D. Discrimination cannot exist in a competitive labor market
Explanation
In a competitive market, discriminatory employers generally face higher costs and can be undercut, so discrimination may persist only when customers support it or regulation requires it. A wage gap alone does not prove discrimination because groups may differ in skills and job choices.
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