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:

Quality Control

A process through which a business seeks to ensure that product quality is maintained or improved, involving the detection of errors.

Confidence Interval

A variety of values, obtained through statistical analysis of samples, posited to likely hold the value of an unknown population parameter.

Population Proportions

Measures that represent the fraction of individuals in a population that exhibit a particular characteristic or attribute.

Mass Production

The manufacturing of large quantities of standardized products, often using assembly lines or automated technology.