A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2019 · Q171 Mark

The diagram represents the demand and supply of labour in a competitive industry. [Figure 17.1] 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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Marking points from the official mark scheme (Oct/Nov 2019). 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, Oct/Nov 2019 Paper 3 Variant 1, question 17.

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