Economics 101 Practice Test: Earnings and Discrimination — Flashcards | Economics 101 | FatSkills

Economics 101 Practice Test: Earnings and Discrimination — Flashcards

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Economic discrimination is a long-term economic inequality among people based on their gender, ethnicity, or color. It can also be defined as the difference in pay or wage rates for equally productive groups. 

Economic discrimination can include: job availability, wages, prices and/or availability of goods and services, and the amount of capital investment funding available to minorities for business. 
Economic discrimination can also include discrimination against workers, consumers, and minority-owned businesses. 
Earnings discrimination occurs when employees producing work of equal value are differentially remunerated because of their social group. 

Some examples of inequality include:
- Women and children with lack of access to healthcare
- Older persons, migrants, and refugees facing lack of opportunities and discrimination
- Discrimination based on religion, ethnicity, gender, and sexual preference 

1 of 50 Ready
When wage differentials are observed in competitive labor markets, the neoclassical theory of labor markets would predict
a difference in the value of marginal product of labor.
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