Economics (AS & A Level) · May / June 2025 · Paper 31 · Question 14

The diagrams show the demand for and supply of labour. [Three labour market diagrams: (1) upward-sloping S and downward-sloping D intersecting, with areas 1 above and 2 below the equilibrium wage line; (2) horizontal S and downward-sloping D intersecting, with area 3 below S above D; (3) vertical S and downward-sloping D intersecting, with area 4 below the equilibrium wage line and left of S.] Which two areas represent economic rent?

1. A1 and 3
2. B1 and 4
3. C2 and 3
4. D2 and 4

As printed in the paper