Author Question: Because of the owner's prejudice, a firm chooses to discriminate against hiring Asian workers. ... (Read 59 times)

storky111 · **on:** Jun 30, 2018

Because of the owner's prejudice, a firm chooses to discriminate against hiring Asian workers. Compared to an otherwise identical, nondiscriminating firm in the same competitive market, the discriminating firm will:
a. incur higher costs.
b. receive lower profits.
c. receive higher profits.
d. be characterized by both (a) and (b).

Question 2

Unanticipated increase in inflation transfers wealth from the borrower, who pays the pre-decided rate of interest to the lender.
Indicate whether the statement is true or false