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.

Question

Quizplus · Accepted Answer

Differences in wages alone do not by themselves prove discrimination, as there could be other factors at play such as differences in performance, experience beyond tenure, or responsibilities.

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