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Scenario 19-3 Ethan Works for the Local Piano Moving Company Part Time

Question 44

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Scenario 19-3
Ethan works for the local piano moving company part time after school.Ethan has worked on the job for a couple of years but still hasn't received a wage increase even though newer employees have received raises.Ethan has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks.Ethan believes he is a victim of labour-market discrimination.
-Refer to Scenario 19-3.Why might an economist be skeptical of Ethan's discrimination complaint


A) Market equilibrium will eliminate discrimination.
B) In a competitive market, employers pay employees based on their value to the firm.
C) Only profit maximizers practice discrimination.
D) Only cost minimizers practice discrimination.

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