Question

Economic discrimination puts the economy inside its production possibilities curve because discrimination:

A. promotes present consumption rather than production of capital goods.
B. often causes inflation, which reduces the nation's real output.
C. redistributes income from low-paid to high-paid persons.
D. arbitrarily blocks women and certain minorities from higher-productivity, higher wage jobs and thus keeps the economy from producing its maximum output.

Answer 1

Answer:

The correct answer is letter "D": arbitrarily blocks women and certain minorities from higher-productivity, higher wage jobs and thus keeps the economy from producing its maximum output.

Explanation:

Economic discrimination takes place when different factors such as job availability, wages, and pricing are given to certain people over others because of a biased point of view. Those points of view include the belief that men are better for certain jobs than men and vice versa or that highly-educated students can perform better than people whose education low-income students. These subjective positions do not allow the market to reach its maximum production level.