David Card and Alan Kruger Conducted a Study of Fast-Food

question 15

Multiple Choice

David Card and Alan Kruger conducted a study of fast-food restaurants in New Jersey and Pennsylvania.The study found that

• A) there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states.
• B) the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage.
• C) increases in the minimum wage had a very small impact on employment.
• D) increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.

---

Definitions:

Weighted Average

A calculation that takes into account the different weights or importance of some elements in a data set, providing a mean value that reflects these weights.

Standard Deviation

A numerical indicator that calculates the degree of spread or deviation of data points from their average.

Payoffs

The outcomes or benefits received from a particular action or decision, often used in the context of game theory.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much they deviate on average from the mean.