Labour Economics: Labour Market Discrimination Quiz

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10 Questions

How does employee discrimination impact firm profitability according to the text?

It has no impact on firm profitability.

Why do integrated firms need to offer more than GHC15 per hour to attract white workers?

Because of compensating wage differentials.

What happens to labor demand for black and white workers when employers hire whichever labor is cheaper?

Demand for black labor increases, demand for white labor decreases.

Which factor plays a significant role in the determination of compensating wage differentials?

Human capital differences between workers.

Why might integrated firms need to offer more than GHC15 per hour even if they dislike black workers?

Due to the perfect substitutability of black and white labor.

What effect does labor mobility have on compensating wage differentials?

Increases compensating wage differentials.

In a color-blind employer scenario, what drives their hiring decisions?

Wage rates of different racial groups.

How does perfect substitutability between black and white workers affect labor market discrimination?

Eliminates labor market discrimination.

How does human capital contribute to differences in wages between black and white workers?

It leads to compensating wage differentials based on skills and qualifications.

Why do color-blind employers favor hiring cheaper labor?

Due to cost-cutting measures and profit maximization.

Test your knowledge on labour market discrimination in the field of labour economics. Explore topics such as compensating wage differentials, human capital, and labour mobility.

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