Unformatted text preview: 6. What is statistical discrimination? @Predicting a worker’s productivity based on the group that he belongs to. b. Using a worker’s characteristics to predict the probability that a worker gets
A offered employment. c. Explaining differences in earnings between groups using differences in average characteristics (such as education, work experience). d. Hating any topic that relates to statistics or econometrics. w. Which of the following is NOT TRUE? a. Stajistic/emitseriir/iinmaltion’iswﬁtabdeigrfirms.
D b. Statistigaldﬁiscrimjnatigncaﬁn st/art'with.rcerﬁpleteiymarbitrary«beliefs: l§Statis cal discrimination must depend on the true characteristics of workers.
. Statistical discrimination reduces overall productivity. 8. The optimal piece—rate pay schedule: a. Is unprofitable for the employer. b. Causes the worker to produce the maximum output.
C C. Involves paying the worker 100% commission. @ All of the above. 9. Paying workers based on performance: a. Selects the most productive workers.
D b. Can cause unintended consequences. c. Can be costly for the firm to measure.
@All of the above. 10. What is an advantage or disadvantage of using a ”tournament” to encourage
effort? i a. Workers have incentive to collude.
@Workers produce more than under piece-rate pay.
D c. Teamwork is rewarded more highly.
d. The winner of the tournament is overpaid for his productivity. ...
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- Fall '08