Betty Hired Workers from the Privileged Class but Without the Use

question 20

Multiple Choice

Betty hired workers from the privileged class but without the use of specific contractual terms. This scenario is an example of _____.

• A) disparate treatment
• B) disparate impact
• C) bona fide qualification testing
• D) employment-at-will
• E) affirmative action

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Definitions:

Free-rider Problem

A situation where individuals or entities receive the benefit of a good or service without contributing to its cost, commonly associated with public goods.

Market Failure

A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.

Goods

Physical items produced for sale or use, characterized by their tangibility and their capacity to satisfy human wants or needs.

Free-rider Problem

A situation in which some individuals consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production, without contributing to its provision.