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

Scarcity, choice and opportunity cost — practice question

A teacher is now paid $30000. She would be prepared to keep working in that teaching job if she were paid at least $25000. In addition, she would prefer to stay as a teacher rather than switch to her next best alternative occupation as an accountant, where she could earn $40000. Which statement is correct?

  • AHer economic rent as a teacher is $5000.
  • BHer economic rent as an accountant is $10000.
  • CHer transfer earnings as a teacher are $30000.
  • DHer transfer earnings as an accountant are $15000.

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