Give a brief explanation of the "superstar economy" as a factor in the widening of income inequality.
What will be an ideal response?
As the markets expand to become more competitive, companies stand to gain more from finding the very best talent. The very best people in the field, then, have compensation that has been bid upward by the top companies, giving them incomes much higher than ordinary talent in their field.
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In 2001, the labor force participation rate of women was ________
a. about 10 percent. b. about 25 percent. c. just over 60 percent. d. more than 80 percent.
As a result of a decrease in the price of gasoline, consumers can afford to buy more gasoline for more driving trips. This is an illustration of
A. consumer sovereignty.
B. the substitution effect.
C. diminishing marginal utility.
D. the income effect.
The velocity of money is
A) independent of M, P, and Y. B) independent of M and Y. C) calculated from M, P, and Y. D) calculated from M and Y.
The impact of fiscal policy is
A) magnified because of crowding out and weakened because of crowding in. B) magnified because of crowding in and weakened because of crowding out. C) magnified because of crowding out and crowding in. D) weakened because of crowding out and crowding in.