Economic studies have generally found that professional sports players have salaries that
a. greatly exceed their marginal contribution to a team's revenue stream.
b. are approximately equal to their marginal revenue products.
c. are about one-half of what they contribute to a team's profitability.
d. are less than one-tenth of their marginal revenue products.
B
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What agreement has been reached to reduce the moral hazard problem and what does it require?
What will be an ideal response?
Suppose the city of Des Moines has a high credit rating, and so when Des Moines borrows funds by selling bonds,
a. the city's high credit rating and the tax status of municipal bonds both contribute to a lower interest rate than would otherwise apply. b. the city's high credit rating and the tax status of municipal bonds both contribute to a higher interest rate than would otherwise apply. c. the city's high credit rating contributes to a lower interest rate than would otherwise apply, while the tax status of municipal bonds contributes to a higher interest rate than would otherwise apply. d. the city's high credit rating contributes to a higher interest rate than would otherwise apply, while the tax status of municipal bonds contributes to a lower interest rate than would otherwise apply.
An economy's natural rate of unemployment is the
a. economy's long-run target level of unemployment. b. amount of unemployment that the economy normally experiences. c. lowest rate of unemployment the economy can achieve. d. All of the above are correct.
The law of diminishing marginal productivity implies that identical increases in all inputs eventually will result in smaller incremental increases in total output.
Answer the following statement true (T) or false (F)