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.

---

Definitions:

Cafeteria

A type of food service location within an institution where customers serve themselves from a variety of dishes made available.

Transfer Prices

Prices used for the sale or transfer of goods and services between departments or divisions within the same company.

Division X

A specific unit, department, or branch of a company, often referred to by a placeholder name "X" for confidentiality or naming purposes.

Receiver Division

The unit within a company that receives goods or services from another segment of the company, often in a transfer pricing scenario.