Pat Goes to the Local Electronics Store to Learn About

question 69

Multiple Choice

Pat goes to the local electronics store to learn about high-end audio equipment. The salesperson spends an hour talking with Pat and demonstrating equipment. Pat then leaves and orders an audio system on the Internet for $250 less than the price at the store. Pat's behavior:

• A)is illegal.
• B)is a form of statistical discrimination.
• C)illustrates the free-rider problem.
• D)illustrates the problem of adverse selection.

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Definitions:

Split Labour Market

A theory that explains the division of the labor market into separate segments, often leading to conflict and discrimination between groups of workers.

Low-wage Workers

Individuals employed in positions that pay less than the average wage, often without benefits and job security.

High-wage Workers

Individuals employed in occupations or industries that offer compensation significantly above the average wage level within an economy or specific geographic area.

Genetic Differences

Variations in the DNA sequence among individuals, populations, or species, which contribute to the biological diversity and individual uniqueness.