Competitive markets tend to eliminate economic discrimination, but there are many historical examples of firms that hired few, or no, black or female workers.
Which of the following is not a reason for the persistence of this form of discrimination?
A) Some white consumers were unwilling to buy from companies that employed black workers.
B) If discrimination makes it difficult for a member of a group to be hired in a particular occupation, there is less incentive for members of the group to be trained to enter that occupation.
C) Laws passed by the federal government made it more expensive to hire black or female workers. As a result, it was less expensive for employers to hire mostly white male workers.
D) In many cases, white workers refused to work with black workers.
Question 2
According to the short-run Phillips curve, if unemployment is 3.2 and inflation is 1.3, an increase in the inflation rate might result in which of the following?
A) a decrease in the demand for labor in the economy
B) an increase in the unemployment rate to 3.4
C) a decrease in the unemployment rate to 3.0
D) a return to the original inflation rate of 1.3
Question 3
What is the natural rate of unemployment?
A) the unemployment rate that exists when the economy is at a trough in a business cycle
B) any unemployment rate that is above the inflation rate
C) the unemployment rate that exists when the economy is at potential GDP
D) an unemployment rate of 0
Farmers’ markets provide fresh, local produce to consumers
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