It is common to hear comments? like: "Why do baseball players earn millions of dollars a year for their negligible contribution to society while major contributorslong dash such as? schoolteachers, police? officers, firefighters, and ambulance driverslong dash earn barely enough to? survive?" Offer an answer based on your knowledge of factor market.
A. Wages of? schoolteachers, police? officers, firefighters, and ambulance drivers are paid by the? government, which always tries to cut its spending.
B. The talents required to play major league baseball are very? scarce, and the marginal revenue product is high.
C. Rich players pay a lot of? taxes, so that their real income is comparable to? schoolteachers' income.