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According to the Theory of Statistical Discrimination

Question 29

Multiple Choice

According to the theory of statistical discrimination:


A) the process of competition should put discriminating employers at a competitive disadvantage
B) the discrimination coefficient is a measure of prejudice in the labor market
C) there will be discriminatory wage differentials because a firm with market power distinguishes between different groups with different elasticities of labor supply
D) a person is judged on the basis of the average characteristics of her or his demographic group

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