Blue Bay Hotels Is in the Process of Modifying the Assessment

question 21

Multiple Choice

Blue Bay Hotels is in the process of modifying the assessment methods the company uses to hire new employees. In the past, the hotel chain has been accused by minority organizations of violating EEO laws in its hiring practices. Which of the following applicant assessment methods would most likely have the LEAST adverse impact on minorities?

• A)aptitude tests
• B)cognitive ability tests
• C)work sampling technique
• D)job knowledge tests

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Definitions:

Substitution Effect

The economic understanding that as prices rise (or incomes decrease), consumers will replace more expensive items with less costly alternatives.

Inferior Good

A type of good for which demand decreases when the income of the consumer increases, inversely related to normal goods.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

Refers to the change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility constant.