Quiz_176 - 90 Why,then, A ,wages

Quiz_176 - 90 Why,then, A ,wages

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90) The total value to society of having garbage removed is greater than the value of baseball games.Why, then, are baseball players paid more than garbage collectors?A) Although the total value of garbage removal is greater than the total value of baseball, wagesare determined by average values.B) There is greater competition in the garbage collection industry than there is in Major LeagueBaseball.C) Garbage removal results in significant external benefits that are not captured in the price paidfor garbage removal. As a result, wages of garbage collectors do not reflect their socialbenefits.D) Wages do not depend on total values but marginal values. The marginal revenue product ofbaseball players exceeds the marginal revenue product of garbage collectors.Answer: D90)Diff: 1Page Ref: 566/566Topic: Differences in WagesLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective Thinking91) The difference between the salaries paid to movie stars and to actors who play supporting roles ismuch greater today than it was in the 1930s and 1940s. What factor explains this increase inrelative salaries over time?91)Diff: 1Page Ref: 567-568/567-568Topic: Differences in WagesLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective Thinking
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  • AACSB, Page Ref, Reflective thinking, Interstate 90, factor demand

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