Some people think it's unfair that celebrities like Kim Kardashian earn a lot more than people who add so much more value to society, like teachers. What do you think explains this wage differential?
What will be an ideal response?
The wages that are paid to celebrities and teachers will depend on each person's ability to produce labor of economic value. Compared to say, teachers, celebrities like Kim Kardashian add a great deal more economic value to the firms that hire them. The fact that the ad revenue and other earnings that they generate are so high could explain their relatively higher wages. Keep in mind that even though teachers are likely to be more important to society than a celebrity, there are far more teachers than celebrities, who are in extremely limited supply. At the margin, the last teacher hired adds less to output than does Kim Kardashian, as measured by her contribution to total revenue.
You might also like to view...
If the Federal Reserve Banks goal was to use open market operations to expand the economy it could move from:
A. MS1 to MS3
B. MS3 to MS2
C. MS4 to MS3
D. MS2 to MS1
_______% of the people on welfare lives below the poverty line.
Fill in the blank(s) with the appropriate word(s).
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. Which good(s) became relatively more expensive for buyers?
A. All three goods became relatively more expensive. B. None of the goods became relatively more expensive. C. Only amusement park tickets became relatively more expensive. D. It depends on the overall rate of inflation in the economy.
In the United States during the Great Depression, tariffs were ________ than they were following World War II, and ________ than they are today
A) higher; higher B) higher; lower C) lower; higher D) lower; lower