The Use of Intelligence Tests in Making Employment Hiring Decisions

question 298

Multiple Choice

The use of intelligence tests in making employment hiring decisions

• A) is a questionable practice.
• B) is becoming standard practice.
• C) has been ruled unconstitutional by the Supreme Court.
• D) is a relatively recent development in the United States.

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Definitions:

Opportunity Costs

Represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used in the production of goods or services, such as wages for labor, rent for offices, or materials for production.

Implicit Costs

Implicit costs are the opportunity costs of using resources that a company already owns, representing the potential income lost by not utilizing them elsewhere.

Diseconomies of Scale

A phenomenon where an increase in production leads to higher average costs per unit due to inefficiencies, often occurring when companies become too large.