Question

Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural students. The colleges decide to admit only students applying from rural areas. This policy could be referred to as

Answer 1

Answer:

statistical discrimination

Explanation:

Statistical discrimination: The term "statistical discrimination" is described as a behavior whereby gender or racial inequality occurs when "Economic agents", for example, employers, consumers, workers, etc. have certain imperfect information associated with individuals they tend to interact with.

In other words, "statistical discrimination" occurs when specific groups tend to differ "statistically" in their administration on characteristics similar in a particular situation.

In the question above, the given policy could be referred to as "statistical discrimination".