Why do professional basketball players earn more than police officers? Illustrate this situation graphically
What will be an ideal response?
Wages are based on the marginal revenue product of labor and the supply of labor. The marginal revenue product of professional basketball players is very high and the supply of people with the ability to play professional basketball is very low, whereas the marginal revenue product of police officers is much lower and the supply of people with the ability to be police officers is much higher.
You might also like to view...
Real GDP per person in Westland is $30,000, while real GDP in Eastland is $10,000, Westland's real GDP per person is growing at 3 percent per year and Eastland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Eastland's real GDP per person will rise until it equals Westland's real GDP per person. B. Eastland's real GDP per person will eventually be greater than Westland's. C. Westland's real GDP per person will always be at least $20,000 greater than Eastland's. D. Eastland's real GDP per person will always be exactly $20,000 less than Westland's.
Even when earning zero profit, exporters (nearly) equalize prices across markets. ?
Answer the following statement true (T) or false (F)
A command system is a method of organizing production that
A) uses a market-like mechanism inside the firm. B) relies on competitive markets. C) uses a managerial hierarchy. D) uses incentives most extensively.
The demand and supply of a product is given in the above table. A unit tax of $2 is imposed on the product. The equilibrium quantity for this product after the tax is imposed is equal to
A) 30 units. B) 25 units. C) 20 units. D) 15 units.