经济学第六章.pptVIP

* * * * * * * * * * * * * * * * * Figure 10.11: Equilibrium in the Market for natural resources. In panel (a) the supply curve for a natural resource is upward sloping. The price of the natural resource is determined by the interaction of demand and supply. In panel (b) the supply curve for the natural resource is a vertical line, indicating that the quantity supplied does not respond to changes in price. In this case the price of the natural resource is determined only by demand. The price of a factor of production with a vertical supply curve is called an economic rent or a pure rent. * * There is number of theories trying to explain why CEO compensation sky-rocketed in recent years. Some of these arguments are somewhat similar to the ones presented for top movie and sports stars. It is believed that those top executives possess skills, connections and capabilities that will ensure superior performance of those companies and value created for shareholders. As the result, there is a competition among large corporations for the ‘best talent’. Students should elaborate on this topic but should base their arguments on the theories learnt in the chapter. Discussions on comparing the pay cheques of the CEOs and the ‘value created for shareholders’ should be also welcomed. Again, there is no unequivocal solution offered. There are arguments for legislative restrictions on the compensations, other types of regulatory approaches. However, there are supporters of the opinion that nothing can be really done. Can competition eliminate economic discrimination? Factors that ensure the persistence of discrimination worker discrimination customer discrimination negative feedback loops Solutions changing social norms in society role of equal opportunity legislation affirmative action anti-discrimination action Should workers’ pay depend on how much they work or produce? What options do employers have to pay workers? straight-time pay or salary pay relates to time worked