When Employment Discrimination Results from the Personal Prejudices of Employers

Multiple Choice

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

A) competitive forces will tend to reduce discrimination.
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) discrimination by an employer will reduce production costs since the employer can pay lower wages.