Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-If a particular factor has a specific use, its transfer earning is very high.

Question

Quizplus · Accepted Answer

Transfer earnings refer to the minimum amount a factor (such as labor) must be paid to keep it in its current use, not the amount it could earn if it has a specific or unique use. The scenario describes an increase in income due to a job change, not the concept of transfer earnings.

Scenario 14.1 A Worker in Firm a Earns an Income of $5,000