Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 19 - Part VI - Earnings and Discrimination - Questions for Review - Page 410: 7

Answer

See explanation.

Work Step by Step

Competitive economies provide a possible solution for discrimination against workers. The entrance of firms concerned solely with earnings helps to reduce unequal pay differentials. Such pay differentials exist in open markets even because consumers are able to continue a unfair system or when it is enforced by the government.
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