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.

Question

Quizplus · Accepted Answer

Discrimination based on personal prejudices can lead to higher costs for employers because they may overlook more qualified candidates, resulting in less efficient operations.

When Employment Discrimination Results from the Personal Prejudices of Employers