Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of executives demanded will A. decrease; decrease B. decrease; increase O c. increase; decrease OD. increase; increase Executive pay will rise the quantity of executives supplied will The outcome is inefficient because OA. government employees will move to the private sector B. the marginal cost of work to executives exceeds the marginal benefit to firms OC. the marginal benefit to firms exceeds the marginal cost of work to executives OD. there is surplus of executives and some become unemployed

Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of executives demanded will A. decrease; decrease B. decrease; increase O c. increase; decrease OD. increase; increase Executive pay will rise the quantity of executives supplied will The outcome is inefficient because OA. government employees will move to the private sector B. the marginal cost of work to executives exceeds the marginal benefit to firms OC. the marginal benefit to firms exceeds the marginal cost of work to executives OD. there is surplus of executives and some become unemployed

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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