Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of executives demanded will OA. increase; increase OB. increase; decrease OC. decrease; increase O D. decrease; decrease Executive pay will The outcome is inefficient because the quantity of executives supplied will
Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of executives demanded will OA. increase; increase OB. increase; decrease OC. decrease; increase O D. decrease; decrease Executive pay will The outcome is inefficient because the quantity of executives supplied will
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Suppose that Congress caps executive pay at a level below the equilibrium.
The quantity of executives demanded will
OA. increase; increase
OB. increase; decrease
C. decrease; increase
OD. decrease; decrease
Executive pay will ▼
The outcome is inefficient because
OA. there is surplus of executives and some become unemployed
O B. the marginal benefit to firms exceeds the marginal cost of work to executives
OC. the marginal cost of work to executives exceeds the marginal benefit to firms
O D. government employees will move to the private sector
#3
4
the quantity of executives supplied will
5
O
9
6
&
7
4
8
Ö](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79596c7e-b6b2-47ba-bce5-304ebebf725b%2F3f9fd0a3-b8c8-4c76-b3d3-49b188a1e66f%2Fz7fhi4e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that Congress caps executive pay at a level below the equilibrium.
The quantity of executives demanded will
OA. increase; increase
OB. increase; decrease
C. decrease; increase
OD. decrease; decrease
Executive pay will ▼
The outcome is inefficient because
OA. there is surplus of executives and some become unemployed
O B. the marginal benefit to firms exceeds the marginal cost of work to executives
OC. the marginal cost of work to executives exceeds the marginal benefit to firms
O D. government employees will move to the private sector
#3
4
the quantity of executives supplied will
5
O
9
6
&
7
4
8
Ö
![Suppose that Congress caps executive pay at a level below the equilibrium.
The quantity of executives demanded will
OA. increase; increase
OB. increase; decrease
OC. decrease; increase
O D. decrease; decrease
Executive pay will
The outcome is ine
OA. there is sur
OB. the margina
OC. the margina
OD. governmen
rise
fall
с
to
$
, the quantity of executives supplied will
es and some become unemployed
s exceeds the marginal cost of work to executives
o executives exceeds the marginal benefit to firms
I move to the private sector](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79596c7e-b6b2-47ba-bce5-304ebebf725b%2F3f9fd0a3-b8c8-4c76-b3d3-49b188a1e66f%2Fhoppyge_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that Congress caps executive pay at a level below the equilibrium.
The quantity of executives demanded will
OA. increase; increase
OB. increase; decrease
OC. decrease; increase
O D. decrease; decrease
Executive pay will
The outcome is ine
OA. there is sur
OB. the margina
OC. the margina
OD. governmen
rise
fall
с
to
$
, the quantity of executives supplied will
es and some become unemployed
s exceeds the marginal cost of work to executives
o executives exceeds the marginal benefit to firms
I move to the private sector
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