Which of the Following Statements Is TRUE

question 26

Multiple Choice

Which of the following statements is TRUE?
I. Statistical discrimination is based on ill will toward a group because of their race, sex, nationality, or religion.
II. Statistical discrimination is judging people by the averages of the groups to which they belong.
III. As better ways of judging people develop, the merit of using statistical discrimination rises.

• A) I and III only
• B) II only
• C) I and II only
• D) I only

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Definitions:

Kinked Demand Curve Model

A model in economics illustrating how firms in oligopoly markets might maintain stable prices despite changes in cost or demand, due to the asymmetric responses of rivals to price changes.

Price Reduction

A decrease in the selling price of goods or services, often to attract more buyers or respond to market conditions.

Non-OPEC Oil

Crude oil produced by countries that are not members of the Organization of the Petroleum Exporting Countries (OPEC).

World Market

A global marketplace where goods, services, and financial assets are traded across countries.