Chapter 16: Problem 16

Statement 1: A college diploma is still a necessary condition for a person moving from the secondary to the primary labor market, but that diploma is no longer a sufficient condition. Statement 2: Professional basketball (especially the National Basketball Association) is an example of a winner-take-all market. (LO1, 3, 9) a) Statement 1 is true and statement 2 is false. b) Statement 2 is true and statement 1 is false. c) Both statements are true. d) Both statements are false.

Short Answer

Expert verified

c) Both statements are true.

Step by step solution

Analyze Statement 1

Statement 1 states that "A college diploma is still a necessary condition for a person moving from the secondary to the primary labor market, but that diploma is no longer a sufficient condition." This statement is pointing out that a college diploma is essential for moving to a higher labor market, but it is no longer enough on its own. This suggests that additional factors, like work experience and skills, could be important as well.

Analyze Statement 2

Statement 2 says "Professional basketball (especially the National Basketball Association) is an example of a winner-take-all market." A winner-take-all market refers to a market where only the best performers receive a significant portion of the rewards, while the rest receive little or nothing. In the context of professional basketball, it means that only the top players receive the bulk of the fame, endorsements, and other benefits, while others do not.

Match statements with the given options

Based on our analysis: - Statement 1 is true because a college diploma is indeed a necessary condition for entering the primary labor market, but it is no longer a sufficient condition, as other factors like experience and skills are important too. - Statement 2 is also true because professional basketball can be considered a winner-take-all market, where the top players receive most of the rewards.