When Employment Discrimination Results from the Personal Prejudices of Employers

question 54

Multiple Choice

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.

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Definitions:

Commodity

A fundamental product utilized in trade that can be exchanged for others of its kind.

Tariffs and Quotas

Government-imposed trade restrictions; tariffs are taxes on imported goods, while quotas are limits on the quantity of goods that can be imported.

Quotas

Restrictions imposed by a government on the quantity of a good that can be imported or exported during a specific period.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or raise revenue.