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In a "Superstar Economy," Companies Try to Find Only the Very

Question 5

Multiple Choice

In a "superstar economy," companies try to find only the very best talent.What effect has this had on labor markets?


A) There is a widening gap in income between people who are competent and people who are the very best.
B) Unemployment tends to increase because one top employee may replace two or three less competent employees.
C) The income gap has narrowed as the "superstars" come up with ideas to produce in ways that boost the pay of lower-income workers.
D) Per capita income has dropped because the "superstars" tend to save, rather than spend, their large salaries.

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