Suppose Copernicus Corporation Hires Damon Danielson Rather Than Elmer Ellison

question 316

Multiple Choice

Suppose Copernicus Corporation hires Damon Danielson rather than Elmer Ellison, simply because Damon is a graduate of an Ivy League school, while Elmer is a graduate of a small public university. Elmer is actually more qualified than Damon. This is an example of

• A)statistical discrimination.
• B)irrational behavior.
• C)monopsony exploitation.
• D)human-capital discrimination.

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Definitions:

Rate of Exchange

The price of one country's currency expressed in terms of another country's currency, facilitating international trade and investment.

Supply and Demand Curves

Graphical representations that show the relationship between the prices of goods and services and their quantities supplied and demanded in the market.

Pound/Dollar Market

A foreign exchange market where the British pound and the US dollar are traded, indicating the exchange rate between these two currencies.

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting international trade and economics.