The Total Value to Society of Having Garbage Removed Is

question 19

Multiple Choice

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, wages are determined by average values.
• B)Garbage removal results in significant external benefits that are not captured in the price paid for garbage removal. As a result, wages of garbage collectors do not reflect their social benefits.
• C)There is greater competition in the garbage collection industry than there is in Major League Baseball.
• D)Wages do not depend on total values but marginal values. The marginal revenue product of baseball players exceeds the marginal revenue product of garbage collectors.

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Definitions:

Leadership Style

The distinctive approach or method adopted by a leader to guide, motivate, and manage followers or team members.

Situation

Refers to a set of circumstances or a scenario within which individuals find themselves, affecting their decisions and actions.

Participative Leader

A person in charge who shares decision making with group members.

Morale

Refers to the emotional or mental condition with respect to confidence, enthusiasm, and loyalty of a person or group, especially in the context of work or team environments.