Question

Evidence for discrimination in the workplace exists, which can cause those who are discriminated against the have lower wages. According to economic theory, firms that discriminate should be eliminated from the market in the long run because: ______

Answer 1

Answer:

The correct answer is letter "C": their workers are less productive.

Explanation:

Unfortunately, discrimination in the work frame occurs. Employers have a certain preference for some type of workers over others based on race, gender, age, ethnicity, religion or sexual orientation. Wages can reflect what employers are looking for, being less favored employees who are victims of discrimination.

In the long run, it is believed that discriminated employees become discouraged, having little to no incentive to improve their performance at work. In fact, they tend to become less productive being this the reason why economists believe discriminating companies should be eliminated.