Which of the Following Explains Why Talented Major League Baseball

question 188

Multiple Choice

Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?

• A)because the total value of baseball games is much higher than the total value of neurosurgery
• B)because it takes far more skill and training to be a major league baseball player than to be a neurosurgeon
• C)because the supply of talented major league baseball players is relatively low compared to the supply of neurosurgeons. Therefore, major league baseball players exert far more market power than neurosurgeons.
• D)because the supply of talented major league baseball players is low relative to its demand compared to the supply of neurosurgeons. Therefore, adding another player yields far greater marginal benefit than adding another neurosurgeon.

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Definitions:

U.S. Incomes

Refers to the distribution of earnings and wealth among individuals and families within the United States.

Economic Conditions

The state of the economy at a given time, encompassing various factors including employment levels, inflation rate, and GDP growth.

Inflation

The quickness with which the average market prices for goods and services grow, reducing the realm of purchasing.

Unemployment

A situation in which individuals who are able and willing to work cannot find jobs.