Scenario 19-5 Jason Works Part-Time at a Grocery Store After School. Jason

question 316

Multiple Choice

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

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

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Definitions:

Materials Price Variance

The deviation between the actual cost of direct materials and the standard cost, multiplied by the quantity purchased.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to a unit of production, often based on direct labor hours or machine hours.

Fixed Overhead Budget

A financial plan that projects the expected fixed costs required to support the operations of a business.

Standard Machine-Hours

A predetermined measure of the amount of machine time required to produce a unit of product, used in costing and budgeting.