Contests can help explain why
A) the super rich earn vastly more than other people who have similar amounts of human capital.
B) human capital among the poor has been increasing.
C) the world distribution of income is becoming more equal.
D) the average woman earns less than the average man.

Question

Quizplus · Accepted Answer

Contests, such as sports competitions or auctions, may result in winner-take-all outcomes where the top performers earn significantly more than their peers who may have similar levels of human capital. This can explain why the super-rich earn vastly more than others with similar education, experience, and skills.

Contests Can Help Explain Why