Harvard University Once Paid Two Financial Managers, Who Helped Manage

question 93

Multiple Choice

Harvard University once paid two financial managers, who helped manage Harvard's $20 billion endowment, each about $25 million. Harvard defended their pay "as normal in the community of hedge-fund managers with which Harvard Management competes for talent." An economist probably would say that these pay levels:

• A) make sense if their marginal factor costs exceed $25 million.
• B) make sense if the value of their marginal product exceeds $25 million.
• C) makes sense if their efficiency value calculates out to that level.
• D) does not make sense because Harvard has the option of simply putting its funds into a random selection of assets that would do as well.

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Definitions:

Slavery Changes

Refers to the historical evolutions and transformations in the institution of slavery over time, affecting laws, practices, and societal attitudes.

Enslaved Women

Women who were subjected to slavery, focusing on their unique experiences, struggles, and resilience in the face of inhuman conditions and systemic oppression.

Violent Uprisings

Insurrections characterized by force and aggression, aiming to challenge or overthrow established authority.

Native Guards

Historical units of African American soldiers, particularly during the Civil War, challenging racial stereotypes and fighting for freedom and recognition.