Which of the following is a form of statistical discrimination?
a. Young people are charged higher automobile insurance rates due to the higher probability of an accident.
b. Restaurants prefer to hire women than men as servers.
c. Women prefer to see a female doctor than a male doctor.
d. Women are more likely than men to pay too much money for a new automobile because salespeople bargain more with men than with women.
e. Female physicians earn 20 percent less than male physicians, on average.
A
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On a national level, the concentration ratio for grocery stores is very low. But, the "true" market for grocery stores is local in nature. What limitation does the geographic market put on the measure of concentration for grocery stores?
A) On the local level, grocery stores are more concentrated than they appear on the national level. B) On the local level, grocery stores are not as concentrated as they appear on the national level. C) The level of concentration is overestimated when viewing the national level. D) Both answers A and C are correct.
Assume that both the demand curve and the supply curve for DVD players shift to the left but the supply curve shifts more than the demand curve. As a result,
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of DVD players will increase; the equilibrium quantity will decrease.
If a firm is forced to take external costs into account, it will
A) reduce production and charge a higher market price. B) increase production and charge a lower market price. C) reduce prices and hire more workers. D) reduce prices and hire fewer workers.
Assume that an inferior good is produced in a perfectly competitive, increasing-cost industry with external diseconomies. The market is initially in long-run equilibrium. After all long-run adjustments are made, which of the following would occur in this market as a result of an increase in consumers' incomes?
a. The market price would remain unchanged; the market quantity would rise. b. The market price would rise; the market quantity would fall. c. The market price would remain unchanged; the market quantity would fall. d. Both the market price and the market quantity would fall. e. Both the market price and the market quantity would rise.