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.
-Reliance on indicators of productivity such as education, experience, and test scores may keep some very good people from getting a job and may result in hiring unproductive people. This is called:

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.
-Reliance on indicators of productivity such as education, experience, and test scores may keep some very good people from getting a job and may result in hiring unproductive people. This is called:

Quizplus · Accepted Answer

This situation is an example of statistical discrimination, where employers rely on general indicators of productivity to make hiring decisions instead of individual merit. This can lead to the hiring of less productive individuals and the exclusion of highly productive individuals who may not fit the stereotype typically associated with success in a particular job.

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