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Why Might Imperfect Information Lead Employers to Engage in Discrimination

Question 11

Multiple Choice

Why might imperfect information lead employers to engage in discrimination?


A) Imperfect information does not actually lead employers to engage in discrimination because employers may rely on screening and signaling in the presence of imperfect information.
B) In the long run,firms do not learn from their mistakes.
C) In the long run,the wage effects of discrimination will be zero.
D) In the long run,firms will fail to form correct expectations if consumers are discriminatory.
E) Competitive pressures force employers to use the information at their disposal efficiently.

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