What are competitive markets inclined to do ?
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Answer: C. reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out of the market
Explanation
Competitive markets penalize discrimination because non-discriminating firms hire cheaper labor and earn higher profits. Bigoted firms facing higher labor costs struggle to survive as profit-maximizing competitors drive them out of business. Market competition naturally exerts pressure to reduce discrimination through the pursuit of superior economic efficiency. Economic discrimination occurs when workers of equal productivity receive different wages based on demographic characteristics. Profit maximization drives competitive firms to seek out undervalued labor resources regardless of personal prejudices. Market forces refer to the invisible hand mechanisms that allocate resources efficiently in competitive economic environments.
Increasing labor market discrimination contradicts economic models showing that prejudice imposes unnecessary cost penalties on firms. Stating that markets have no impact ignores the profit motive driving firms to exploit cheaper marginalized labor pools. Allowing bigoted employers to charge arbitrary prices ignores competitive pricing pressures that eliminate inefficient firms.
Related questions
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Answer: B. decreases, increases
Domestic market subsidies alter standard welfare distributions by decreasing producer surplus or changing sector revenues. Subsidies simultaneously provide targeted benefits that increase consumer surplus for specific gr...
Q2. Which principle generally does NOT apply to a government's trade policy ?
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Answer: B. because domestic consumers outnumber domestic producer’s policy markers usually enact Free-trade policies to satisfy the consumer majority:
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Q3. What do buy national policies entail ?
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Answer: A. result in government purchase policies favoring domestic over foreign producers
Buy national policies direct government procurement processes to favor domestic producers over foreign competitors consistently. Governments implement these purchasing rules to stimulate domestic industrial growth and su...
Q4. What failure does Jagdish Bhagwati criticize in U.S. administrations regarding free trade ?
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Answer: A. and the dangers of free capital movements for LDCs with poorly developed financial institutions
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Q5. Who owns private sector companies ?
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Answer: B. Shareholders
Private sector companies are owned by shareholders who hold equity shares in the corporation.
Q6. Why is collusion difficult for an oligopoly to sustain ?
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Answer: A. all of these answers
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