Which One of the Following Cases Would Most Likely Be

question 86

Multiple Choice

Which one of the following cases would most likely be filed under the theory of disparate impact?

• A) Majority of the applicants with high test scores are rejected due to an affirmative action plan.
• B) A majority applicant is rejected on the grounds that the company only hires individuals from the minority group.
• C) Minority applicants are being disproportionately rejected relative to majority applicants by a paper-and-pencil test.
• D) A minority employee is fired for testifying in a discrimination suit filed against an employer.
• E) At a particular organization, employees belonging to the minority group are given more privileges and benefits compared to employees belonging to the majority group.

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Definitions:

Simple Spending Multiplier

The ratio of a change in real GDP demanded to the initial change in spending that brought it about; the numerical value of the simple spending multiplier is 1/(1 + MPC); called “simple” because only consumption varies with income.

Marginal Propensity

Describes the portion of additional income that an individual is willing to spend on consumption rather than saving.

Off-Balance Sheet Financing

Off-balance sheet financing is the use of funding or financial activities not recorded on the company's balance sheet to keep debt ratios low.

Capitalizing A Lease

The process of recognizing a leased asset and related lease liability on the balance sheet, treating the lease as a purchase financed by a loan.