If Two Accountants Have Had the Same Education, Amount of Experience

question 57

Multiple Choice

If two accountants have had the same education, amount of experience, and work at the same type of job for the same profit-maximizing firm, which charges its clients a uniform hourly fee,

• A)they should earn the same amount of money
• B)the one whose job is riskier should be paid more
• C)the one whose job is riskier should be paid less
• D)the one who has a higher marginal product (due to ability)should be paid more
• E)the one who has a higher marginal product (due to ability)should be paid less

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Definitions:

Ecologically Sustainable

Practices and processes that preserve environmental resources for future generations while meeting current needs.

Renewable Energy

Energy from resources that are naturally replenishing, such as solar, wind, water, and geothermal heat.

Short-termism

The concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Resource Constraints

Limits on the availability of factors of production that reduce a company’s ability to produce goods and services.