Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 9

People often sell goods (or raffle tickets) as part of a fund-raising project. These projects typically offer valuable prizes to those who sell over a fixed number of units. Often a grand prize, like a trip to Hawaii, is offered to the person who sells the most units. Why are these prizes offered Relate this example to the high pay received by chief executive officers of large corporations.