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

question 107

Multiple Choice

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

• A)they should earn the same amount of money, even though one accountant is more productive than the other.
• B)the one whose job is less risky should be paid more.
• C)the one whose job is riskier should be paid less.
• D)the one who has a higher marginal product should be paid more.
• E)the one who has a higher marginal product should be paid less.

---

Definitions:

Taxation

The process by which governments impose charges on citizens and corporate entities to fund public expenditures and services.

Jean Baptiste Colbert

was a French politician who served as the Minister of Finances of France under King Louis XIV, known for his policies aimed at strengthening the French economy through mercantilism.

Federal Tax

A tax levied by the federal government on income, corporate profits, and other aspects of the financial activity within a country.

Cigarettes

are small cylinders of finely cut tobacco leaves rolled in thin paper for smoking, often containing chemical additives.