The Primary Economic Explanation as to Why a World-Renowned Architect

question 53

Multiple Choice

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

• A)architects' services are not as highly valued by society as are the services of athletes and actors.
• B)only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive.
• C)government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors.
• D)it is impossible, currently, for an architect to supply his or her services at low cost to every customer.

---

Definitions:

Relevant Cost

A relevant cost is a cost that will be affected by a decision in the future and is important in business decision-making processes.

Depreciation Charge

An accounting expense recorded to allocate the cost of a tangible asset over its useful life.

Book Value

The value of an asset according to its balance sheet account balance, often different from its market value.