What Is a Partial Explanation for the Very High Pay

question 2

Multiple Choice

What is a partial explanation for the very high pay earned by the most successful actors and actresses

• A)They benefit from a compensating differential.
• B)Moviegoers all want to see the very best actors.
• C)They have acting degrees from accredited acting schools.
• D)The supply of good actors is very large.

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Definitions:

Demand Prices

Prices of goods and services determined by the demand for them, often influenced by consumers' willingness and ability to pay.

Supply Prices

The costs associated with producing goods and services, which can influence the supply levels offered by producers.

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.