Problems for Section 251

2. True. Ability as a lawyer is presumably correlated with a lawyer's salary as a lawyer. The higher-paid lawyer (that is, the one with more ability) sacrifices relatively more to become a judge than does the lower-paid lawyer. The value of the compensation for being a judge, money gain plus prestige gain, is relatively higher for the less able lawyers.

5. Quite the contrary. On this account their wage would be higher, not lower. That it is in fact lower is testimony to other differences between the two jobs: for example, engineers must at great expense learn something about engineering.

6. False. Wages taken in psychic satisfaction are untaxable; so the lower the money wage the lower the effective tax rate on total wages, and this skews the choice of occupations away from money-intensive but unpleasant ones. The executive limousine, the three-martini lunch, and the capacious office, which are untaxed, might merely be a cost-effective way of compensating workers, especially those with high salaries and therefore high income taxes.

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