Professor Simpson Earns $80,000 Per Year Teaching at the Local

question 22

Multiple Choice

Professor Simpson earns $80,000 per year teaching at the local college. Due to budget cutbacks, the college cuts her annual salary to $50,000 per year. Professor Simpson remains at the college and her behavior at work is not affected by the salary cut.Based upon this information, which of the following is most likely?

• A)Professor Simpson's entire salary is an economic rent.
• B)The $30,000 cut from Professor Simpson's salary was entirely economic rent.
• C)The $30,000 cut from Professor Simpson's salary was partly economic rent.
• D)None of Professor Simpson's salary is an economic rent.

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Definitions:

Environmental Pressures

Forces from the surrounding environment that influence the behavior, decisions, or wellbeing of an individual or organization.

Higher Education

An advanced level of education pursued after completing high school, often at colleges, universities, or specialized institutions.

Reasoning Skills

The capacity to think logically, understand complex ideas, draw inferences, and solve problems through analytical thinking.

Social Constructions

Concepts or perceptions of reality based on societal norms and cultural practices that are believed to exist because they are recognized by a society.