Which of the Following Is an Example of Cream Skimming

question 5

Multiple Choice

Which of the following is an example of cream skimming?

• A) hiring workers of a certain religion because they are thought to be hard workers
• B) admitting only the best students to a new charter school for the underprivileged in order to have better average test scores
• C) awarding prizes to top performers
• D) creating a tournament scheme in order to induce workers to exert higher effort
• E) teachers cheating on standardized tests because their compensation is tied to students' test scores

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Definitions:

Economic Sense

The logic or rationale behind economic decisions or policies, often evaluated in terms of benefits versus costs.

Progressed

Advanced or moved forward in development or improvement.

Nations

Vast collectives of individuals linked through shared ancestry, historical background, cultural practices, or linguistic similarities, residing in a specific nation or region.

Real GDP

The calculation of a nation's economic production, corrected for changes in prices due to inflation or deflation, to accurately represent the actual worth of the produced goods and services.