Suppose That an Employer Hires Workers with Blue Eyes and Workers

question 11

Multiple Choice

Suppose that an employer hires workers with blue eyes and workers with brown eyes. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?

• A) The employer will be just as cost efficient as a nondiscriminating employer.
• B) The employer will face higher costs than a nondiscriminating employer.
• C) The employer will have lower costs.
• D) The employer will have higher profits.
• E) Both a and c are correct.

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Definitions:

Complete

To finish all parts of a task or duty fully and to satisfaction.

Contract Condition

A provision in a contract that specifies a requirement or event that must occur or be met for the contract or a part of it to be fulfilled or enforced.

Discharged

In legal terms, refers to the completion or termination of an obligation, such as a debt or duty, often resulting in release from responsibility.

Discharge a Contract

The termination of a contractual obligation, either through fulfillment of the contract terms, mutual agreement, or other legal means.