Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is
A)social responsibility.
B)the profit motive.
C)fear of reprisal from groups that suffer from those wage differences.
D)fear of reprisal from government in the form of prosecution.

Question

Quizplus · Accepted Answer

The profit motive drives employers to pay salaries that are competitive with other companies in order to attract and retain qualified employees. Discriminatory wage practices can ultimately harm a company's bottom line by losing top talent and damaging its public image. Therefore, employers have an incentive to pay fair wages regardless of demographic characteristics.

Some Economists Are Skeptical of the Argument That Employers Are