CAIE A-Level Economics A2 8.3.10 Transfer Earnings and Economic Rent Questions
Practise separating transfer earnings from economic rent in labour market examples, diagrams and minimum wage changes.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- calculate economic rent from a worker's actual pay and minimum acceptable wage
- identify diagram areas for transfer earnings and economic rent after supply shifts
- explain how a minimum wage changes rent for workers who remain employed
CAIE A-Level Economics A2 8.3.10 Transfer Earnings and Economic Rent Questions question 1
The diagram represents the demand and supply of labour in a competitive industry.
What is true about unit of labour L when they are paid wage W ?
A
L is paid only economic rent.
B
L is paid an element of economic rent and transfer earnings.
C
L is paid below transfer earnings and leaves the industry.
D
L is paid exactly transfer earnings and remains in work.
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