Explain why unskilled workers earn little economic rent, while much of an NFL quarterback's salary is rent
The supply curve of unskilled workers is more elastic than that of professional quarterbacks because of the
years of training required to train a quarterback. Therefore, more of an unskilled worker's earnings are opportunity cost; more of a quarterback's earnings are rent.
Economics
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Market failure happens when a market does not generate the most efficient outcome
Indicate whether the statement is true or false
Economics
A key problem facing insurance companies is that people know more about their own health than do insurance companies, and that those people who are seriously ill are the ones most likely to want to obtain health insurance. This phenomenon is called
A) adverse selection. B) asymmetric information. C) moral hazard. D) a premium death spiral.
Economics