Question

8) How does discrimination impact the economy?

Answer 1

The discrimination can be of various types. It can be based on Gender, Caste, or even the prices that producers charge on their goods.

Below are the consequences of discrimination:

- Low level of Profits: if the discrimination is based on caste or gender, then the highly skilled workers may get left out from the hiring process and the low skilled workers may get a job offer. Due to this, the profits of the company would decline as work's quality will fall

- Rise of Interpersonal Conflicts due to discrimination may hamper the work culture and affects the profitability of the company

- Some groups of consumers tend to pay higher prices for the same goods and are worse-off. This will impact the whole economy as the aggregate demand will, consequently, fall due to higher price charged

- Trade fear due to practices like predatory pricing.