Statistical Discrimination Occurs When

question 32

Multiple Choice

Statistical discrimination occurs when:

• A)individuals are judged solely on the basis of their personal characteristics.
• B)individuals are judged on the basis of the groups to which they belong.
• C)firms have perfect information about each potential buyer.
• D)statistics are used to make employment decisions.

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Definitions:

Value-Based Pricing

A pricing strategy where prices are set primarily on the perceived value to the customer, rather than on the actual cost of production or historical prices.

Preventive Maintenance

Routine maintenance and inspections of equipment and facilities to prevent unexpected breakdowns and to ensure efficient operation.

Useful Life

The estimated duration of time over which an asset is expected to be usable by an organization, influencing depreciation calculations.

Economic Value

The assessment of value that a good or service offers to an economic entity.