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:

Health Psychology

A branch of psychology that focuses on how biological, psychological, and social factors affect health and illness.

Behavior

The actions or reactions of an organism, often in response to its environment.

Health/Illness

The state of being well and free from disease (health) versus the condition of being physically or mentally unwell (illness).

Behavioral Pharmacology

The study of how drugs affect behavior, often focusing on the effects of psychiatric medications.