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question 85

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Use the following to answer questions .
Exhibit: Discrimination Model Use the following to answer questions . Exhibit: Discrimination Model   -(Exhibit: Discrimination Model)  If blacks and whites have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, the wage of whites will be _______ , the wage of blacks will be _______ , and the quantity hired of whites will be _______ . A)  W<sub>1</sub>; W; L<sub>1 </sub> B)  W; W<sub>1</sub>; L C)  W<sub>1</sub>; W; L D)  W; W<sub>1</sub> ; L<sub>1 </sub>
-(Exhibit: Discrimination Model) If blacks and whites have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, the wage of whites will be _______ , the wage of blacks will be _______ , and the quantity hired of whites will be _______ .


Definitions:

Anchoring with Adjustment

A cognitive bias where initial information serves as an anchor and subsequent decisions are adjusted around this anchor, though often not enough.

Expression

The process of making known one's thoughts or feelings through words, gestures, or artistic mediums.

Influence

The capacity or power of individuals or things to be a compelling force on the actions, behavior, opinions, or development of others.

Loss and Risk Aversion Heuristic

A cognitive bias where people prefer to avoid losses rather than acquiring equivalent gains, indicating a greater sensitivity to losses over gains.

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