Statistical discrimination
A)arises from employer prejudice
B)arises from consumer prejudice
C)does not involve prejudice by employers or consumers
D)is illegal in the United States
E)tends to reduce the profits of profit-maximizing firms

Question

Quizplus · Accepted Answer

Statistical discrimination occurs when employers use statistical averages of groups to make decisions about individuals, rather than relying on prejudice or bias. It involves using group characteristics to infer individual traits, without personal prejudice.

Statistical Discrimination