Asked by Stacie Batchelor on Jun 16, 2024
Verified
The amount a person earns over and above the amount she/he would be willing to work for is called
A) marginal resource cost.
B) economic rent.
C) marginal revenue product.
D) profit on human capital.
Economic Rent
Income derived from the ownership or control of a scarce resource, exceeding the income that would cause the resource to be brought into use.
Marginal Resource Cost
The additional cost incurred by acquiring one more unit of a resource.
Marginal Revenue Product
Marginal revenue product is the additional revenue generated from the use of one more unit of a variable input, holding other inputs constant.
- Acquire knowledge about the principle of economic rent and how it affects wages and property assets.
Verified Answer
CM
Cristian MelenaJun 22, 2024
Final Answer :
B
Explanation :
Economic rent is the amount earned by a factor of production (such as labor) over and above the minimum amount required to keep it in its current use. It represents the surplus or extra earnings that the individual receives due to their unique abilities or circumstances, and is often used to describe the earnings of individuals in specialized or high-skilled professions.
Learning Objectives
- Acquire knowledge about the principle of economic rent and how it affects wages and property assets.