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) it is costless for employers to discriminate against groups they do not like.
B) the wages of employees who are discriminated against will rise.
C) an employer who discriminates will experience higher costs.
D) discrimination by an employer will reduce production costs since the employer can pay lower wages.