Top footballers tend to earn more than lecturers because ?
Correct answer: D. top footballers are relatively scarce in relation to lecturers
- A. footballers give more entertainment
- B. lecturers are lazy
- C. the labor markets are imperfect
- D. top footballers are relatively scarce in relation to lecturers
Explanation
Top footballers are rare relative to the demand for their services, so their marginal revenue product and wages can be very high. The comparison is mainly explained by relative scarcity, not by lecturers being lazy.
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