When Employment Discrimination Results from the Personal Prejudices of Employers

question 73

Multiple Choice

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

• A) competitive forces will tend to reduce discrimination.
• B) the wages of employees who are discriminated against will rise.
• C) an employer who discriminates will have the same costs as those who do not discriminate.
• D) discrimination by an employer will reduce production costs since the employer can pay lower wages.

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Definitions:

Mortgage Bonds

Bonds secured by real estate or physical equipment that can be sold in case the bond issuer defaults.

Individual Investors

Private individuals who invest their own money in various financial instruments, such as stocks, bonds, or real estate, aiming to achieve personal financial goals.

Par Value

A nominal or face value assigned to a share of stock by the corporation at the time of issuance.

Bond Indentures

A legal and binding contract between a bond issuer and the bondholders, specifying the terms of the bond such as interest payments and the maturity date.