If labor markets are competitive, discriminating employers:

If labor markets are competitive, discriminating employers:
 a. suffer no economic consequences from discrimination.
 b. incur higher costs as a result of discrimination and are therefore at a competitive disadvantage.
  c. incur lower costs than nondiscriminating employers and therefore have a competitive advantage.
  d. enjoy higher profits.

QUESTION 2

The longer the annuity on a sum of money the lower will be its present value.
  Indicate whether the statement is true or false

QUESTION 3

The key to understanding the movement in stock prices is to understand
 A) expectations.
  B) market share.
  C) accounting profits.
  D) the firms contribution to the social welfare of its employees.

QUESTION 4

Some employers choose to discriminate as a means of ____ information costs by hiring workers from a similar background as those that were ____ productive in the past.
 a. increasing; more
  b. reducing; more
 c. increasing; less
 d. reducing; less

QUESTION 5

The present value of 200 to be received after 5years at 10 percent interest is 112.2.
  Indicate whether the statement is true or false

QUESTION 6

Economic profits and the performance of stock
 A) are independent of each other.
  B) are negatively related.
  C) are positively related.
  D) are positively related only during downturns in the business cycle.

QUESTION 7

In the Santa Rita mines in Arizona in 1870, Mexican miners received about 12 per month while American miners received 70 . Although the wages of both groups tended to rise over time, the gap persisted until at least 1910 . Mexican and American miners did the same work and were equally productive. Economists call this pay differential:
 a. prejudicial differentials.
 b. compensating differentials.
  c. wage discrimination.
 d. job entry discrimination.

QUESTION 8

Assume that Rudolf withdraws 600 from his bank account which was earning him 10 percent interest per annum to buy a high-end digital camera. The bank interest forgone by him will be the opportunity cost of this purchase.
  Indicate whether the statement is true or false