When Employment Discrimination Results from the Personal Prejudices of Employers

question 41

Multiple Choice

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

• A) it is costless for employers to discriminate against groups they do not like.
• B) the wages of employees who are discriminated against will actually rise.
• C) an employer who discriminates will experience higher costs.
• D) discrimination by an employer will reduce production costs since the employer can pay lower wages.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, particularly concerning liquidity.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Common Stock

A type of equity security that represents ownership in a corporation and entitles the holder to a claim on part of the company's profits in the form of dividends.

Financing Activities

Transactions involving long-term liabilities, stockholder's equity, and changes in short-term loans that impact a company's capital structure.