Briefly and concisely define the following terms:
a. statistical discrimination
b. compensating wage differential
c. affirmative action
a. Statistical discrimination is said to occur when the productivity of a particular worker is estimated to be low just because that worker belongs to a particular group. It is not necessarily caused by prejudice; it can exist when there is no prejudice. However it can still be a source of inefficiency.
b. A compensating wage differential is a financial incentive for jobs that are more difficult, dangerous, or unpleasant than others.
c. Affirmative action refers to legislation requirement that firms and other organizations with small representations of minorities or women in their workforces are required to end discriminatory practices and document the fact that they are making efforts to locate members of minority groups and females and then to hire them if they are qualified.
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A demand schedule
A) shows that demand is on schedule. B) is a graph showing a relationship between the quantity demanded and the price of a good. C) shows the quantity demanded at one price. D) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. E) shows how the demand changes when the supply changes.
In comparison to a government that runs a balanced budget, when the government runs a budget deficit,
A) business investment will fall. B) the equilibrium interest rate will fall. C) household savings will fall. D) none of the above
To be binding, a price ceiling must be set above the equilibrium price
a. True b. False Indicate whether the statement is true or false
In the last few decades, income inequality in the United States has ________ mostly because of the ________
A. increased; gains by the rich. B. increased; poor getting poorer. C. decreased; stagnation by the economy in general. D. decreased; gains by the poor.