Question 31
Labour MarketWhen a worker earns more than the wage just sufficient to keep him in his job, the excess income is called
- A.an opportunity cost
- B.an economic rent
- C.transfer earnings
- D.surplus value.
Show the answer and explanation
Answer: B (an economic rent)
Explanation
The wage just needed to keep a worker in a job is his transfer earnings; anything above it is economic rent.