Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

A teacher is paid $30 000 at present but would still be prepared to carry on in the role if her pay were at least $25 000. She would rather remain in her teaching position than move to her next best alternative job as an accountant, in which she could receive $40 000. Which statement is correct?

  • AHer economic rent as a teacher is $5000.
  • BHer economic rent as an accountant is $10 000.
  • CHer transfer earnings as a teacher are $30 000.
  • DHer transfer earnings as an accountant are $15 000.

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