What is the difference between statistical and taste-based discrimination? The owner of a company that manufactures automobile parts states that it will not hire gay or lesbian employees
Is this an example of statistical or taste-based discrimination?
Employers that practice taste-based discrimination are willing to forego profits when they do so. Employers engaging in statistical discrimination, however, are trying to enhance their profits. Suppose black employees are more productive than white employees, on average. An employer who practices taste-based discrimination and is prejudiced against black employees will not hire a black employee even if he is more productive. An employer who practices statistical discrimination will use the data on productivity to hire only black employees.
This is probably an example of taste-based discrimination. Taste-based discrimination occurs when people's preferences or prejudices cause them to discriminate against a certain group. Statistical discrimination occurs when employers use an observable variable (race) to help determine if the person will be a good employee. For example, an employer may use the statistical average of black or white applicants to determine the productivity of a black or white individual. These expectations cause people to discriminate against a certain group.
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Friedman's theory of the natural rate of unemployment and output
a. indicates the power of the central bank to target levels of unemployment. b. demonstrates the limits to the trade-off between inflation and unemployment. c. is the theoretical foundation for the monetarist belief that, in the long run, the influence of the money stock is primarily on the price level and other nominal variables. d. both b and c. e. all of the above.
Here's a taste of history: from 1775 to the present, U.S. agricultural productivity has grown because of all of the following except
a. new fertilizers and pesticides b. the development of the tractor c. the use of horses and mules d. price ceilings on food goods e. rural electrification
Which of the following is not a contention of advocates of unions?
a. Unions are a necessary antidote to the market power of the firms that hire workers. b. In the case of a "company town," a union may balance the firm's market power and protect the workers from being at the mercy of the firm's owners. c. The introduction of a union benefits all workers in a firm. d. Unions are important for helping firms respond efficiently to workers' concerns.
The World Bank will primarily make
A. long-term in nature for investment projects which might not receive private financial support. B. short-term loans for investment projects which might not receive private financial support. C. long-term loans for investment projects that are relatively risky. D. short-term loans for investment projects that are relatively safe.