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.

---

Definitions:

Multiplier Effect

An economic phenomenon where an initial injection of spending leads to increased income and consumption, further amplifying the initial economic impact.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and within a specified period.

National Income

The total income earned by a nation's people and businesses, including wages, rent, interest, and profits.

Discretionary Fiscal Policy

involves deliberate changes by government in taxation and spending policies intended to stabilize or stimulate the economy.