The Tournament Pay Explanation Is Useful in an Attempt to Explain

question 52

Multiple Choice

The tournament pay explanation is useful in an attempt to explain why

• A) some corporate executives earn amounts higher than their marginal revenue product.
• B) very few people actually earn the minimum wage.
• C) political entrepreneurs can generate campaign contributions from businesses outside of their districts.
• D) people with only a high school education earn less than those with college degrees.

---

Definitions:

Impaired Claimants

Individuals who have a claim (usually in a legal or bankruptcy context) but whose right to collect or settle is limited or reduced.

Indubitable Equivalent

A term in bankruptcy law referring to a replacement of collateral that is unquestionably equal in value to the original collateral.

Granted A Discharge

The release of a debtor from the obligation to repay his or her debts, typically occurring at the conclusion of a bankruptcy case.

Liquidation Proceeding

A legal process in which a company's assets are distributed to claimants, conducted when the company is insolvent and unable to meet its debt obligations.