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Chapter 22: Problem 19

The average American CEO earns times the earnings of the average worker. (LO7) a) 10 to 15 d) 300 to 600 b) 25 to 40 e) 1,000 to 1,200 c) 100 to 150

Short Answer

Expert verified
The average American CEO earns between 300 to 600 times the earnings of the average worker, as indicated by option d). This difference in salary can be attributed to factors such as higher responsibilities, longer working hours, and higher qualifications of CEOs compared to average workers.

Step by step solution

01

Identify the correct answer

Based on various studies and reports, the answer to this exercise can be found as: Option d) 300 to 600 times the earnings of the average worker.
02

Explanation for the correct answer

CEOs of American companies tend to have salaries that greatly exceed those of the average worker. They earn between 300 to 600 times more than an average worker, according to several studies. This is due to many factors like higher responsibility, longer working hours, and higher qualifications. CEOs often have a greater impact on a company's performance and are rewarded accordingly for the risks and decisions they make. Thus, the correct answer is option d) 300 to 600 times the earnings of the average worker.

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Most popular questions from this chapter

The monopolist is (LO1) a) an imperfect competitor and has a horizontal demand curve b) an imperfect competitor and has a downward sloping demand curve c) a perfect competitor and has a horizontal demand curve d) a perfect competitor and has a downward sloping demand curve

Which statement is true? \((\mathrm{LO} 4,5)\) a) It is impossible for monopolies to exist in the United States. b) Once a monopoly is set up, it is impossible to dislodge it. c) Monopolies can be overcome only by market forces. d) Monopolies can be overcome only by the government. e) None of these statements is true.

Who said, "Good organizations should be structured by geniuses so that idiots can run them. Unfortunately, most American organizations are structured by idiots so that it takes a genius to run them"? (LO7) a) Ichak Adizes b) Robert Frost c) John Hicks d) General Douglas MacArthur e) President Dwight D. Eisenhower

Which statement is true about economic profit in the long run? (LO2,3) a) Both the monopolist and the perfect competitor make one. b) Neither the monopolist nor the perfect competitor makes one. c) Only the perfect competitor makes one. d) Only the monopolist makes one.

Which statement is true? (LO1) a) All monopolists' products have close substitutes. b) Most firms in the United States are monopolies. c) There are no monopolies in the United States. d) A monopoly is a firm that produces all the output in an industry. e) None of these statements is true.
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