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. discrimination by an employer will reduce production costs since the employer can pay lower wages.
c. the wages of employees who are discriminated against will actually rise.
d. an employer who discriminates will experience higher costs.
d. an employer who discriminates will experience higher costs.
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The use of a two-part price in a regulated natural monopoly
A) maximizes the deadweight loss. B) allows the firm to maximize profits. C) may make it possible for the firm to obey a marginal cost pricing rule and not go out of business. D) All of the above answers are correct.
The tax-induced difference between the price paid by consumers and the price received by producers is
A. the tax difference. B. the tax wedge. C. the statutory incidence. D. the supply side effect.
If a perfectly competitive industry is monopolized, consumer surplus
a. can be expected to decrease b. will usually remain constant c. can be expected to increase d. drops from a high value to zero e. increases from zero to a high value
If demand is unit elastic, an increase in price will lead to an increase in total revenue
Indicate whether the statement is true or false