Discrimination ________ Workers in the Group Being Discriminated Against and ________

question 62

Multiple Choice

Discrimination ________ workers in the group being discriminated against and ________ workers in the group being favoured.

• A)decreases the supply of;increases the supply of
• B)decreases the demand for and the supply of;increases the demand for and the supply of
• C)does not change the demand for;increases the demand for
• D)decreases the demand for;increases the demand for
• E)decreases the demand for;does not change the demand for

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Definitions:

Asymmetric Information

A situation in which one party in a transaction has more or significantly better information than the other, leading to an imbalance in the transaction.

Moral-Hazard

A situation where one party is more likely to take risks because the consequences of those risks will be felt by another party.

Principal-Agent Problem

A dilemma arising from a conflict of interest between a principal (someone who entrusts a task) and an agent (the one performing the task), where the agent may not act in the best interest of the principal.

Behavioral Asymmetry

A situation in economic or psychological contexts where individuals or entities exhibit uneven or unequal behavioral responses under similar circumstances.