Statistical Discrimination

question 177

Multiple Choice

Statistical discrimination

• A) can persist in the long run if differences in average characteristics among groups continue.
• B) will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms.
• C) requires that employers have discrimination coefficients greater than zero.
• D) is also known as occupational segregation.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in its price, indicating the sensitivity of consumers or producers to price changes.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Price Elasticity Of Demand

The ratio of the percentage change in quantity demanded of a product or resource to the percentage change in its price; a measure of the responsiveness of buyers to a change in the price of a product or resource.

Percentage Changes

Calculations that measure the degree of change over time, expressed as a percentage to highlight growth or decline in quantitative data.