The figure given below shows the income-leisure trade off of an individual.Figure 16.5
AB and AC: Income constraints of the individual
I 1 , I 2 , and I 3 curves show the income leisure choices of the individual.
-If employers have imperfect information about job applicants, it may be rational for them to use:

Question

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
  AB and AC: Income constraints of the individual
I 1 , I 2 , and I 3 curves show the income leisure choices of the individual.
-If employers have imperfect information about job applicants, it may be rational for them to use:

Quizplus · Accepted Answer

Statistical discrimination is when employers use characteristics of a group to make assumptions about an individual. This may occur when employers have imperfect information about job applicants. For example, if an employer assumes that all young workers are unreliable due to lack of experience, they may discriminate against all young applicants, even though some may be highly responsible and reliable.

The Figure Given Below Shows the Income-Leisure Trade Off of an Individual.Figure