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.

Question

Quizplus · Accepted Answer

Competitive forces will tend to reduce discrimination because employers who do not discriminate can hire equally skilled workers at lower wages, thus gaining a competitive advantage over those who do discriminate.

When Employment Discrimination Results from the Personal Prejudices of Employers