We’ll test your business knowledge in each issue of Lehigh Business, and give you an opportunity to win bragging rights and Lehigh swag. This Biz Quiz comes courtesy of Economics Professor Robert Thornton, who holds the Charles William MacFarlane Professorship.
Suppose that an economist is investigating the allegation that wage discrimination exists against female employees of a certain firm with two locational branches. Investigating the charge, the economist finds that it is indeed the case that the female employees of the firm are receiving lower average pay than males in each of the two branches. However, in comparing the overall levels of average male and female pay for both locations combined, the economist finds that females are actually receiving higher average pay than males. How can this be?
Think you know the answer?
You can win bragging rights—and some cool Lehigh swag. Submit your answer to email@example.com by Jan. 1, 2018. We’ll post the correct answer on lehigh.edu/lehighbusiness by Jan. 15, 2018. One winner will be randomly selected from all the correct submissions.
Our random winner in our 2016 issue was Samantha Femia ’15. Congratulations!