When employment discrimination results from the personal prejudices of employers,
A) only legal requirements will be able to reduce the amount of employment discrimination.
B) competitive markets will generally tend to promote discrimination as firms try to lower their costs to increase their profits.
C) competitive markets will tend to make it costly for employers to discriminate, reducing the amount of discrimination.
D) none of the above will be true.

Question

Quizplus · Accepted Answer

Competitive markets will tend to make it costly for employers to discriminate because discrimination can limit the pool of skilled workers and decrease productivity. Employers who discriminate may also face legal repercussions and damaged reputation, leading to a loss of customers and profits. While legal requirements are important in preventing discrimination, competitive markets can also play a significant role in encouraging fair and equal employment practices. Option B is incorrect because while firms may try to lower costs, discrimination can lead to lower productivity and potential legal trouble, ultimately hurting profits. Option D is incorrect because both legal requirements and competitive markets can work together to reduce employment discrimination.

When Employment Discrimination Results from the Personal Prejudices of Employers