Michael Jordan's high wage was predominantly:
A)exploitation.
B)an economic rent.
C)a compensation for disutility.
D)a return on high human-capital investment.
E)none of the above.

Question

Quizplus · Accepted Answer

Michael Jordan's high wage was predominantly considered an economic rent, which is a payment to a factor of production in excess of what is needed to keep that factor in its current use. Jordan's unique skills and celebrity status created a situation where his earnings far exceeded what would be necessary to incentivize someone of his talent to play basketball, thus fitting the definition of economic rent.

Michael Jordan's High Wage Was Predominantly