Members of certain groups have the right to sue employers if discriminated against.Other things the same,then according to the model of quasi-fixed costs,this right will tend to
A) increase the wage rate of the group.
B) reduce the employment of the group.
C) increase the turnover rate of the group.
D) reduce the unemployment rate of the group.

Question

Quizplus · Accepted Answer

The model of quasi-fixed costs suggests that employers will respond to increased costs associated with hiring members of a particular group by reducing their employment. All else equal, the right to sue employers for discrimination represents an added cost to hiring members of that group, which would incentivize employers to reduce their employment of those workers. Therefore, the answer is B.

Members of Certain Groups Have the Right to Sue Employers