Question

The average American CEO earns times the earnings of the average worker. (LO7) a) 10 to 15 d) 300 to 600 b) 25 to 40 e) 1,000 to 1,200 c) 100 to 150

Short answer

The average American CEO earns between 300 to 600 times the earnings of the average worker, as indicated by option d). This difference in salary can be attributed to factors such as higher responsibilities, longer working hours, and higher qualifications of CEOs compared to average workers.

Step-by-step solution

Identify the correct answer

Based on various studies and reports, the answer to this exercise can be found as: Option d) 300 to 600 times the earnings of the average worker.

Explanation for the correct answer

CEOs of American companies tend to have salaries that greatly exceed those of the average worker. They earn between 300 to 600 times more than an average worker, according to several studies. This is due to many factors like higher responsibility, longer working hours, and higher qualifications. CEOs often have a greater impact on a company's performance and are rewarded accordingly for the risks and decisions they make. Thus, the correct answer is option d) 300 to 600 times the earnings of the average worker.