Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

An engineer receives $100 000 each year. The best alternative paid job she could obtain is a teaching position paying $60 000 a year. What are her transfer earnings and her economic rent?

  • Atransfer earnings $60 000; economic rent zero
  • Btransfer earnings $60 000; economic rent $40 000
  • Ctransfer earnings $100 000; economic rent zero
  • Dtransfer earnings $100 000; economic rent $40 000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI