A-LevelEconomicsThe price system and the microeconomy9708/32 · Feb/Mar 2018 · Q161 Mark

A teacher currently earns $30000 but would be willing to continue to do the job provided she earned at least $25000. She prefers to stay in her teaching job than change to her next best alternative employment as an accountant where she could earn $40000. Which statement is correct? A Her economic rent as a teacher is $5000. B Her economic rent as an accountant is $10000. C Her transfer earnings as a teacher are $30000. D Her transfer earnings as an accountant are $15000.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2018). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Feb/Mar 2018 Paper 3 Variant 2, question 16.

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