Scenario 19-5 Kofi Works Part-Time at a Department Store After School. Kofi

question 42

Multiple Choice

Scenario 19-5
Kofi works part-time at a department store after school. Kofi has worked at the department store for two years but still hasn't received a wage increase, even though newer employees have received raises. Kofi has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Kofi believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5. Why might an economist be skeptical of Kofi's discrimination complaint?

• A)Through antitrust laws, discriminating firms can be penalized with large fees.
• B)Differences in wages alone do not by themselves prove discrimination.
• C)Discrimination leads to profit maximization.
• D)Even if customers dislike Kofi because he's not helpful, if the department store operates in a competitive market the department store will pay Kofi the same as other workers.

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Definitions:

Interpret

To explain the meaning of information, data, or actions to understand their significance or implications.

One-Sample Z-Test

A statistical hypothesis test used to determine whether the mean of a single sample is significantly different from a known or hypothesized population mean.

T-Test

An analysis technique designed to assess if the mean values of two separate groups differ significantly.

Sample Size

Refers to the number of observations or data points used in a study or experiment.