One Implication from the Evidence on EI to Date Is

question 43

Multiple Choice

One implication from the evidence on EI to date is that employers should consider it a factor in hiring employees, especially in jobs that demand ________.

• A) a high degree of social interaction
• B) good analytical skills
• C) the ability to work independently
• D) good critical thinking skills
• E) good mathematical skills

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Definitions:

Business-Stealing Externality

Business-Stealing Externality occurs when a new entrant in a market captures a portion of the incumbent firm's customers, potentially leading to costs not accounted for in the entrant's decisions.

Spillover Benefits

These are benefits experienced by those who are not directly involved in economic transactions or activities; they result from the positive externalities of such transactions.

Advertising

The act of promoting products, services, or brands through various media channels to inform, persuade, and influence purchasing decisions.

Socially Inefficient

A situation where resources are not allocated in the most beneficial way for society as a whole, often resulting in market failure.