The dispute over the pay of chief executive officers (CEOs) of U.S. corporations hinges on whether or not such pay:
A. should be granted for past performance or for current performance.
B. is determined in a competitive labor market or in a monopsonistic labor market.
C. is justified on productivity grounds or mainly reflects an overestimation of CEO importance
by corporate boards of directors.
D. should contain performance incentives such as stock options, stock shares, or bonuses.
Answer: C
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Welfare data show that in the United States
a. most welfare recipients receive benefits only for a short time b. welfare encourages young women to have children c. children brought up on welfare tend to remain on welfare as adults d. having poor parents does not increase the chances of a child's being on welfare as an adult e. children of poor parents have a 50 percent chance of being middle-income adults
According to the graph shown, if this economy were open to free trade, domestic producers would produce how many units?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 45
B. 85
C. 120
D. 75
To gain market share
A) a firm needs to be in a competitive market. B) a firm needs to limit substitutes. C) a firm needs to produce a commodity. D) a firm needs to be a substitute for other products
The case against advertising includes the assertion that advertising
A. keeps firms from spending huge sums of money to create artificial differences among goods. B. ensures high quality and efficient production. C. provides consumers with valuable information about product availability, quality, and price. D. decreases competition by increasing barriers to entry of new firms into an industry.