The Economics of Discrimination

Authors: Gary S. Becker

Key Ideas

1. Discrimination leads to economic inefficiency where resources are not allocated efficiently based on skills and productivity.

2. Discrimination can occur based on race, gender, religion, and other factors and can have significant economic consequences.

3. Becker's economic theory of discrimination suggests that individuals and firms may engage in discriminatory behavior if the costs of such behavior are lower than the benefits.

4. Education plays a crucial role in reducing discrimination by providing individuals with the skills and qualifications necessary to compete in the labor market....
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Quiz

1. Which factors can discrimination be based on?

Race

Gender

Religion

All of the above

2. What is Becker's economic theory of discrimination based on?

Higher costs of discriminatory behavior

Lower costs of discriminatory behavior

Equal costs and benefits of discriminatory behavior

Higher benefits of discriminatory behavior

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