You Work for an Employer Who Applies Affirmative Action in Its

question 1

Multiple Choice

You work for an employer who applies affirmative action in its hiring practices. This means your company does which of the following?

• A) Gives special preferences to disadvantaged groups
• B) Sets strict quotas for the number of minorities it will hire
• C) Guarantees that a woman must be hired for the next job opening
• D) Disregards disadvantaged status, all other things being equal
• E) Hires based on minority status, rather than qualifications

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Definitions:

Moral-Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will bear the cost.

Above-Equilibrium Wages

Wages that are higher than the market equilibrium, often used by employers to reduce turnover or increase productivity.

Firms

Businesses or enterprises engaged in commercial, industrial, or professional activities, aiming to earn profits by providing goods or services.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to an imbalance in a market or poor decision-making outcomes.