NARRBEGIN: Exhibit 11-1
Exhibit 11-1

-In Exhibit 11-1, the twentieth unit of the resource is earning a wage of
A) $4, all of which is economic rent
B) $4, none of which is economic rent
C) $8, all of which is economic rent
D) $8, none of which is economic rent
E) $8, half of which is economic rent

Question

NARRBEGIN: Exhibit 11-1
Exhibit 11-1
 
-In Exhibit 11-1, the twentieth unit of the resource is earning a wage of
A) $4, all of which is economic rent 
B) $4, none of which is economic rent 
C) $8, all of which is economic rent 
D) $8, none of which is economic rent 
E) $8, half of which is economic rent

Quizplus · Accepted Answer

The 20th unit of the resource is earning a wage of $8, none of which is economic rent. This is because economic rent is the payment received by a resource over and above what is necessary to keep it in its current use. In this case, the 20th unit is receiving the same wage as the previous units, indicating that there is no extra payment for the resource being in its current use.

NARRBEGIN: Exhibit 11-1 Exhibit 11-1