In the newspaper this morning,you read about the downfall of a multi-national entertainment business,and a report that the company's CEO enjoyed a 9% increase in his salary during the same year that the company's profits were down 35%.As you read further,you learn that the company's board of directors approved undeserved salary increases.Clearly,this is an example of how inequality and greed can infiltrate the free-market economic system.
Level of Learning 3: Application of principles

Question

Quizplus · Accepted Answer

This statement requires the application of principles to analyze a real-world scenario. The statement suggests that inequality and greed can infiltrate the free-market economic system, as evidenced by the undeserved salary increases enjoyed by the CEO of a multi-national entertainment business, despite the company's declining profits. This is a clear example of how economic inequality can arise due to systemic factors, rather than individual merit or effort.

In the Newspaper This Morning,you Read About the Downfall of a Multi-National