Technology Is an Important Factor in Explaining the High Incomes

question 89

Multiple Choice

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

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

---

Definitions:

Demand Increases

A situation in which the quantity of a product or service that consumers are willing and able to buy at a specific price rises.

Price Restrictions

Regulations or limits placed on the price level for goods and services, often by a government to control inflation or protect consumers.

Excess Demand

A situation in an economic market where the quantity demanded of a good or service exceeds the quantity supplied at the current price.

Supply Curve

A graph showing the relationship between the price of a good and the amount that suppliers are willing and able to sell at different prices.