Generalizing using statistical discrimination is:
A. an irrational response and always leads to loss of surplus.
B. a rational response to being on the wrong end of an information asymmetry.
C. a rational response, although government always steps in to prevent it.
D. All of these statements are true.
B. a rational response to being on the wrong end of an information asymmetry.
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In the figure above, the marginal rate of substitution (MRS) at point A is equal to ________ pounds of pickles per pound of olives
A) 8 B) 6 C) 1 1/3 D) 2
An economic model can be described as
a. an abstract representation of reality b. a detailed description of some economic phenomenon c. something that is often more complex than the real-world phenomenon it represents d. a vehicle for making positive economic statements e. a vehicle for making normative economic statements