What Is One Potential Problem with Offering a Choice of Contracts

question 105

Multiple Choice

What is one potential problem with offering a choice of contracts to two different employees?

• A) If Employee A is paid more than Employee B, Employee A might sue for discrimination.
• B) Employee A might be paid less than Employee B, proving statistical discrimination.
• C) The two employees might compare salaries without comparing risk-preferences, thereby running the risk of jealousy or claims of discrimination.
• D) The two employees might compare risk preferences without comparing salaries, thereby running the risk of jealousy or claims of discrimination.

---

Definitions:

Genotype

The genetic makeup of an organism, representing the combination of alleles inherited from its parents.

Phenotype

The assortment of detectable features in an individual, formed through the combination of their genetic material and the influence of environmental conditions.

Genotype Frequencies

The proportion of different genetic types within a population.

Phenotype Frequencies

The proportion of various phenotypes in a given population, often impacted by genetic and environmental factors.