One reason why economists earn more than Taco Bell workers is because economists have a ________ value of marginal product of labor than Taco Bell workers.

Question

Quizplus · Accepted Answer

The value of marginal product of labor (VMP) refers to the additional revenue generated by the worker. Economists are trained to have specialized skills that can generate higher revenue and profits for the firms they work for, leading to a higher VMP compared to Taco Bell workers who may have more general and less specialized skills. Therefore, economists earn more because they have a higher VMP.

One Reason Why Economists Earn More Than Taco Bell Workers