According to the text, what economic principle justifies the high ...

[B]

According to the text, what economic principle justifies the high salaries of some Professional athletes?
 
  What will be an ideal response?

Question 2

Besides the fact that the elderly are often on fixed incomes can you think of another reason why most local taxing authorities grant homeowners aged 65 and older school tax exemptions?
 
  What will be an ideal response?

[joshbk44]

Answer to Question 1

Some professional athletes have a very high marginal revenue product. Profit-maximizing firms employ labor if and only if marginal revenue product is equal to or greater than market wages.

Answer to Question 2

Typically a school tax would fit under the benefits-received principle of taxation. However, the elderly are not likely to have school-age children living at home. Therefore the benefits-received principle is weakened in this case.

[B]

Excellent

[kthug]

Thanks for the timely response, appreciate it