The opportunity wage is often a better measure of executive pay than
A. MPP because executives do not have an MPP.
B. Derived demand because the elasticity of supply for an individual is greater than 1.0.
C. MRP because of the difficulty in quantifying executive output.
D. Opportunity costs of executive leisure.
Answer: C
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How might a real business cycle theorist explain the "Volcker recession" of the early 1980s?
What will be an ideal response?
Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
a. Brazil has a comparative advantage in producing coffee. b. Brazil has a comparative advantage in producing both coffee and sugar. c. Chile has a comparative advantage in producing both coffee and sugar. d. Neither Chile nor Brazil has a comparative advantage in producing coffee. e. Brazil has a comparative advantage in producing sugar.
Which of the following components is not included in the M2 definition of money?
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The benefits-received principle of taxation is used to support corporate and personal income taxes.
Answer the following statement true (T) or false (F)