If an Individual Possesses an Ability That Others Cannot Acquire

question 201

Multiple Choice

If an individual possesses an ability that others cannot acquire, payment to that individual is

• A)partly economic rent.
• B)a return called the real wage.
• C)a return from investment in human capital.
• D)comparable to the return to well-trained nurses.

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Definitions:

Real Income

An individual's income adjusted for inflation, reflecting the actual purchasing power of the income.

Producing Automobiles

The process of manufacturing cars, which involves assembling various components like engines, frames, and electronics.

Productivity

A measure of the efficiency of production, often calculated by dividing total output by the total inputs used in the production process.

Demand

The amount of a good or service that buyers are ready and capable of buying at different price levels over a given time frame.