In a Study Conducted by Marianne Bertrand and Sendhil Mullianthan

question 177

Multiple Choice

In a study conducted by Marianne Bertrand and Sendhil Mullianthan, identical resumes were sent in response to help wanted ads in newspapers, with half of the resumes assigned an African-American-sounding name and half assigned a white-sounding name.The study found that

• A)employers were equally likely to interview workers with white-sounding names and with African-American-sounding names.
• B)employers were 50 percent less likely to interview workers with African-American-sounding names.
• C)employers were 50 percent less likely to interview workers with white-sounding names.
• D)no employers chose to interview workers with African-American-sounding names.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the opportunity cost of capital.

Present Value

Today's value of a future monetary sum or cash flow sequence, determined using a predefined rate of return.

Future Cash Flows

The projected cash earnings or revenues a company expects to receive from its operations or investments in the future.

Guaranteed Rate

A fixed interest rate promised on an investment or loan, ensuring stability over its duration.