Economics (AS & A Level) · Oct / Nov 2024 · Paper 33 · Question 14
9708Labour market forces and government intervention
The diagram represents the market for labour. What would be the effect on transfer earnings and economic rent of a change in the supply curve from S1 to S2?
- Atransfer earnings: fall; economic rent: falls
- Btransfer earnings: fall; economic rent: rises
- Ctransfer earnings: rise; economic rent: rises
- Dtransfer earnings: rise; economic rent: falls
As printed in the paper
Show the answer
Correct answer: D. transfer earnings: rise; economic rent: falls
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.