When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. discrimination by an employer will reduce production costs since the employer can pay lower wages.
b. the wages of employees who are discriminated against will rise.
c. an employer who discriminates will have the same costs as those who do not discriminate.
d. competitive forces will tend to reduce discrimination.
d. competitive forces will tend to reduce discrimination.
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Which of the following was NOT a major claim of Fogel and Engerman (1974) in their work on slavery?
(a) Slavery was profitable for Southerners. (b) Slavery slowed the mechanization of the plantations. (c) Slaves were treated fairly well. (d) Slavery was efficient.
During 2011 the inflation rate in Brazil was about 6.6% while in the U.S. it was about 3.3%. At the start of 2011 the nominal exchange rate was about 1.7 Brazilian real per U.S. dollar. If purchasing-power parity holds, about what should the nominal exchange rate have been at the end of 2011? Show your work