Economic rent is
A) the value of a worker's labor services.
B) a worker's wage rate.
C) the income a worker receives from his or her labor.
D) the amount by which a worker's wage exceeds his or her reservation wage.

Question

Quizplus · Accepted Answer

Economic rent is the amount by which a worker's wage exceeds his or her reservation wage, which is the minimum amount of compensation necessary to make the worker willing to accept a job. It represents the extra value that a worker is able to generate above and beyond what is necessary to induce him or her to work.

Economic Rent Is