Question

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1. Give an overview of the theories of discrimination used in economics. What are the main differences between these theories?

Answer 1

Theories on discrimination are described below with differences :

• Intentional discrimination happens when individuals negatively behave towards particular racial group
• Automatic discrimination when people hold prejudices and perceptions towards particular group naturally
• Statistical discrimination happens when individuals use overall beliefs about group to make decisions based on statistical data.

The main difference been that each theory either uses perception or statistics or intention to discriminate groups and behave differently towards them.

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