Suppose That,on Average,women Are Less Likely to Ask for a Raise

question 90

Multiple Choice

Suppose that,on average,women are less likely to ask for a raise or aggressively negotiate for conditions of employment.All else being equal,employers who use statistical discrimination would ________.

• A) hire more women but pay them less than men
• B) hire more women and pay men less than women
• C) hire fewer women and pay them more than men
• D) hire fewer women and pay them same as men

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Definitions:

Risk-Averse Investor

An investor who prefers lower risks, often accepting lower returns to avoid potential losses.

Risky Asset

A type of financial instrument or investment that carries a higher degree of risk, potentially leading to greater returns or significant losses.

Risk Free Asset

An investment with a guaranteed return and no risk of financial loss, typically government bonds.

Expected Returns

The anticipated profit or yield from an investment, considering both the risk and the return.