Suppose the Mean Earnings of Two Groups Differ

question 16

Multiple Choice

Suppose the mean earnings of two groups differ. Which of the following would be the logical conclusion?

• A) The group with the lowest earnings must be the victim of employment discrimination.
• B) The group with the lowest earnings must be less productive.
• C) The group with the highest earnings is more highly motivated and materialistic.
• D) Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination.

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Definitions:

Factory Wages Payable

An account representing the amounts owed to manufacturing personnel for wages that have been earned but not yet paid.

Work in Process Inventory

Goods in manufacturing that are partially completed; not yet ready for sale but more advanced than raw materials.

Direct Material Usage

The quantity of raw materials or supplies consumed in the production of goods or services.

Raw Materials Inventory

The total cost of all components and materials stored that are intended to be used in production.