Suppose a plant has 1000 employees, half of whom are from a minority population. Suppose further that, in order to cut costs, a manager must layoff 100 employees. If she chooses only non-minority workers to lay off, because an analysis of productivity data suggests they are, on average, 5% less efficient then she is
A. using statistical discrimination and it is illegal.
B. on perfectly sound legal ground.
C. using statistical discrimination and it is legal.
D. using inferential discrimination and it is illegal.
Answer: A
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When players cannot achieve their goals because they are unable to make credible threats or promises, the situation is called a:
A. failure of dominant strategies. B. commitment problem. C. Nash equilibrium. D. prisoner's dilemma.
When the elasticity of substitution in the constant elasticity of substitution utility function lies above 1, an increase in the interest rate will cause a saver to save less.
Answer the following statement true (T) or false (F)
In 2006 the Texas Two Step lottery had hit an all-time high jackpot of $2.9 million. If the odds of winning the jackpot are 1.8 million to one and the cost of one lottery ticket is $1.00 is this a fair game? Explain
What will be an ideal response?
According to the new classical economics, changes in monetary policy will only impact GDP if:
a. they impact the price level. b. they are unpredictable. c. people have perfect information about these shocks. d. None of the above.