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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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
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
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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