Insurance rates for teenage males are higher than those for teenage females. This is an example of statistical discrimination because

multiple choice 1

• the number of teenage drivers changes every year.
• people are judged on the basis of the average characteristics of the group to which they belong.
• people are not judged on the basis of the average characteristics of the group to which they belong.
• insurance companies are biased against males.

b. The taste-for-discrimination model suggests that

multiple choice 2

• competition will reduce discrimination against workers in the long run.
• discrimination will become more common in the long run as prejudice against workers occurs.
• competition will increase discrimination against workers in the long run
• discrimination will become illegal as prejudice against workers increases.