Statistical Discrimination Refers to

question 192

Multiple Choice

Statistical discrimination refers to

• A) the crowding of women or minorities into low-paying occupations.
• B) significant differences in average levels of earnings by gender, race, and ethnicity, after accounting for nondiscriminatory factors.
• C) making individual hiring decisions on the basis of the characteristics of the group to which a person belongs, rather than on his or her personal characteristics and productivity.
• D) the 50-percent unexplained residual in studies that try to account for wage differences by gender, race, and ethnic origin.

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Definitions:

Computed NPV

The calculated Net Present Value based on a specific discount rate and series of cash flows.

Perpetual Cash Flows

Cash flows that are expected to continue indefinitely without an end.

D/E Ratio

Debt-to-Equity Ratio, a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Equity Costs

The cost of obtaining capital through the sale of shares in the company, including dividends payouts and the dilution of share value.