Two economists agree that labor market discrimination


Two economists agree that labor market discrimination against certain workers unfairly leads to lower wages for the disfavored group. Economist X argues that government intervention is most likely necessary to eliminate this unfair treatment, whereas Economist York argues that the best solution to the unfair treatment is to let the market work to eliminate it on its own.

Economist Y is most likely to be correct when labor and product markets are highly competitive and the lower wages of the disfavored group result from:

A. Differences in human capital

B. Statistical discrimination

C. Discrimination by employers.

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Business Economics: Two economists agree that labor market discrimination
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