Dr. Benson is regarded as, by far, the best dentist in his part of the country, yet his income is not significantly higher than the average income for a dentist in his area. In contrast, Bo Johnson, the best baseball player in that region, earns five times the average salary of all baseball players. The most likely explanation is that
a. the widespread perception that Dr. Benson is a great dentist is, in fact, incorrect.
b. the baseball players' union is more powerful than the professional association of dentists.
c. Bo Johnson, unlike Dr. Benson, can provide his services to millions of people simultaneously.
d. chance plays a role in determining people's incomes, resulting in earnings discrepancies that are hard to explain or justify.
c
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
If a firm must pay for goods it has ordered with foreign currency, it can hedge its foreign exchange-rate risk by ________ foreign exchange futures ________
A) selling; short B) buying; long C) buying; short D) selling; long
In 1990, Congress passed a new luxury tax on items such as yachts, private airplanes, furs, jewelry, and expensive cars. The goal of the tax was to
a. raise revenue from the wealthy. b. prevent wealthy people from buying luxuries. c. force producers of luxury goods to reduce employment. d. limit exports of luxury goods to other countries.
Between 2007 and mid-2009, the value of the U.S. dollar expressed in Chinese yuan
A. was zero because it was illegal to sell yuan. B. decreased precipitously. C. increased sharply. D. remained essentially constant.