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JAMB Economics 1978 Question 37

Question 37

Labour Market

Which of the following is a term used to describe a payment representing a surplus in excess of transfer costs?

  1. A.Interest rates
  2. B.Opportunity costs
  3. C.Economic rent
  4. D.Indirect costs
  5. E.Wages.
Show the answer and explanation

Answer: C (Economic rent)

Explanation

Economic rent is any payment to a factor above its transfer earnings, the minimum needed to keep it in its present use.