Economists who believe that the economy is self-regulating are more likely to be nonactivists than activists

Shin likes to spend a (relatively small) portion of his income on vacations to Cabo San Lucas (a popular resort area in Mexico)

On these trips, he either stays at a four star resort with panoramic ocean views or a more modest, and slightly deteriorating hotel in the noisy part of town. Understandably, the four star hotel is significantly more expensive. Suppose that the four-star hotel costs $5000/trip while the hotel costs just $500/trip. In recent years, the price of airfare has risen significantly, a change that effects the cost of his trips the same regardless of where he stays. Suppose that airfare has increased from $300/trip to $1000/trip. Why is it that following the higher travels prices, Shin is likely to spend more of his vacations at the four star resort when he travels. (Assume that the hotel rates and Shin's preferences are fixed).

Statistical discrimination refers to:

A. the crowding of women or minorities into low-paying occupations. B. significant differences in average levels of earnings by gender, race, and ethnicity, after accounting for nondiscriminatory factors. C. making individual hiring decisions on the basis of the characteristics of the group to which a person belongs, rather than on his or her personal characteristics and productivity. D. the 50-percent unexplained residual in studies that try to account for wage differences by gender, race, and ethnic origin.