In a "Superstar Economy," Companies Try to Find Only the Very

question 51

Multiple Choice

In a "superstar economy," companies try to find only the very best talent.What effect has this had on labor markets?

• A) There is a widening gap in income between people who are competent and people who are the very best.
• B) Unemployment tends to increase because one top employee may replace two or three less competent employees.
• C) The income gap has narrowed as the "superstars" come up with ideas to produce in ways that boost the pay of lower-income workers.
• D) Per capita income has dropped because the "superstars" tend to save, rather than spend, their large salaries.

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Definitions:

Current Ratio

A financial metric indicating a firm's capacity to settle short-term debts, determined by dividing current assets by current liabilities.

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