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.
-As the total quantity of land is fixed the payment for land is termed as economic rent.

Question

Quizplus · Accepted Answer

Economic rent refers to the payment for the use of a resource (like land) that is in fixed supply. The scenario's mention of income and job offers does not directly relate to the concept of economic rent, but the definition provided is accurate.

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