In professional baseball, some players earn over $20 million per year, while the average salary is about $4 million per year. The most likely explanation for this is that:
A. the market for baseball players is a winner-take-all market.
B. racial discrimination.
C. the best players are 5 times better than the average player.
D. owners are overspending on players' salaries.
Answer: A
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In perfect competition, if the market price of the product is initially higher than the minimum average total cost faced by the firms, then
A. other firms will enter the industry and the industry supply will decrease. B. other firms will enter the industry and the industry supply will increase. C. some firms will exit the industry and the industry supply will decrease. D. some firms will exit the industry and the industry supply will increase.
In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the demand-for-pounds curve is downward-sloping because ________.
A. fewer British pounds can be purchased if pounds become less expensive B. more British pounds can be purchased if pounds become less expensive C. fewer U.S. dollars can be purchased if British pounds become less expensive D. more U.S. dollars can be purchased if British pounds become more expensive
If it took 20 years for real GDP to double, what was the growth rate of real GDP?
A) 4.5 percent B) 3.0 percent C) 3.5 percent D) 4 percent E) 5 percent
Long-term strategies for LDCs to enhance their economic well-being have low opportunity costs
Indicate whether the statement is true or false