The same year that Derek Jeter, one-time shortstop for the New York Yankees, received an annual salary of $23.2 million, the president of the United States received an annual salary of $400,000. If the president of the United States actually contributed more to society than Derek Jeter, we can conclude that:
A. there is never a relationship between marginal revenue product and pay.
B. the salary differences are based entirely on marginal revenue products.
C. factors other than marginal revenue product probably explain the salary differences.
D. the markets for their respective services are perfectly competitive.
Answer: C
You might also like to view...
Bank customers perceive Internet-only banks as being
A) more secure than physical bank branches. B) a better method for the purchase of long-term savings products. C) better at keeping customer information private. D) prone to many more technical problems.
A(n) _____ is an indirect tax imposed on each sale at each stage of production
a. personal tax b. value-added tax c. excise duty d. sales tax e. ad-valorem tax
Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward?
a. As the size of the tax increases, tax revenue continually rises and deadweight loss continually falls. b. As the size of the tax increases, tax revenue and deadweight loss rise initially, but both eventually begin to fall. c. As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss continually rises. d. As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss falls initially, but eventually it begins to rise.
For economists, "myopia" refers to:
A. visual nearsightedness. B. people's difficulty in conceptualizing the future. C. people's tendency to put too much emphasis on the future and ignore important present concerns. D. people's tendency to focus on microeconomic concerns because of an inability to conceptualize macroeconomics.