Professor Plum, who earns $100,000 per year, read in the paper today that the university pays its basketball coach one million dollars per year in exchange for his agreement to remain at the university for at least three more years. The coach earns more than Professor Plum because:
A. universities value sports more than academics.
B. the coach has more human capital than does Professor Plum.
C. the coach is able to earn economic rent due to his unique talents.
D. the demand for sporting events exceeds the demand for college degrees.
Answer: C
Economics
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Refer to the graph below.
Productive efficiency is achieved at what points?
A. A, B, and M B. M, D, and E C. A, C, and F D. C, D, and N
Economics