Which of the following is true of the coefficient of employer discrimination?
A) It is the severity of discrimination that ultimately prevails in the marketplace.
B) It approaches infinity if an employer is not prejudiced.
C) It translates the non-pecuniary taste for discrimination to monetary terms.
D) It is equal to infinity if a worker experiences discrimination.
E) It is less than zero if an employer is not prejudiced.

Question

Quizplus · Accepted Answer

The coefficient of employer discrimination translates the non-pecuniary taste for discrimination to monetary terms. It measures how much more an employer is willing to pay for a non-discriminated group relative to a discriminated group. It does not approach infinity or equal infinity, nor is it less than zero if an employer is not prejudiced.

Which of the Following Is True of the Coefficient of Employer