Economics (AS & A Level) · Feb / March 2025 · Paper 32 · Question 14
9708Labour market forces and government intervention
A teacher currently earns $30000. She would be willing to continue in that teaching job, provided she earned at least $25000. Also, she would prefer to remain a teacher than change to her next best alternative employment as an accountant where she could earn $40000. Which statement is correct?
- AHer economic rent as a teacher is $5000.
- BHer economic rent as an accountant is $10000.
- CHer transfer earnings as a teacher are $30000.
- DHer transfer earnings as an accountant are $15000.
As printed in the paper
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Correct answer: A. Her economic rent as a teacher is $5000.
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