Affirmative Action Programs

question 62

Multiple Choice

Affirmative action programs:

• A) are permitted only when the employer has a past history of discrimination.
• B) must have quotas.
• C) can be mandated by the EEOC.
• D) none of the above

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient and equitable manner from a societal perspective.

Network Externality

A situation where the value or utility of a product or service to one user increases with the number of other users of the same or compatible products or services.

Marginal Private Benefits

The additional benefit received by consumers or producers from consuming or producing one more unit of a good or service.

Negative Externalities

Unintended adverse effects on third parties not involved in an economic transaction, like pollution.