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.

Question

Quizplus · Accepted Answer

Just because newer employees received raises and Jason did not does not necessarily mean that discrimination has occurred. There may be other factors at play, such as differences in experience or job performance. Wages alone cannot prove discrimination.

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