When employment discrimination results from the personal prejudices of employers, economic theory suggests that
A) employers who discriminate will have lower production costs.
B) the wages of employees who are discriminated against will rise.
C) employers who discriminate will have the same production costs as those who do not discriminate.
D) employers who discriminate will have lower profits.

Question

Quizplus · Accepted Answer

Employers who discriminate may incur higher costs by not hiring the most qualified candidates, leading to lower productivity and profits compared to non-discriminating employers who hire based on merit.

When Employment Discrimination Results from the Personal Prejudices of Employers