Technology Is an Important Factor in Explaining the High Incomes

question 44

Multiple Choice

Technology is an important factor in explaining the high incomes of superstars because:

• A)technology is available which can limit access to the superstars
• B)only technologically literate superstars can earn super incomes
• C)technology accounts for differences in incomes within all occupations
• D)technology makes it possible for the best producer to supply every customer at low cost

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Definitions:

IPO Stock

Securities of a private company that are made available to the public for the first time through an initial public offering.

Offering Price

The price at which new shares of a company are made available to the public during an initial public offering (IPO) or other issuance.

Projected Selling Price

The anticipated price at which a product or asset is expected to be sold in the future.

Expected Dividend

The dividend payments that investors anticipate receiving on their shares, based on the company's past dividends or growth prospects.