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Jenny runs a boutique clothing store. She pays her workers 50% more than what s…

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Wize University Microeconomics Textbook > Earnings and Discrimination

Discrimination

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Jenny runs a boutique clothing store. She pays her workers 50% more than what similar clothing stores pay, even though she could pay less and still get all the workers she wants. She feels higher wages make her labor work harder and be more loyal. This is an example of
More Discrimination Questions:
When new firms can easily enter an industry, it tends to eliminate wage differentials that occur from discrimination by:
Debra quits her job as a baker and goes back to university to learn website development. She then gets a higher paying job at a web development firm. This is an example of:
Barbara and Bob work at a small town restaurant. Barbara greets customers at the door and makes less money than Bob, who mops the floors and cleans the outside of all the windows during the winter. This is an example of:
A tech start up company hires Peter because he has a physics degree from his local university. His new job does not require any of the physics he learned, but the company believes that anyone with a physics degree must be intelligent enough to handle the job. This would be an example of: