Which of the Following Is the Best Example of Economic

question 54

Multiple Choice

Which of the following is the best example of economic rent?

• A)Bob leases a two-bedroom apartment in town for $1,000 that he could have got for $700.
• B)Ann was paid a $20,000 bonus this year for selling $500,000 more than her required sales quota.
• C)Diane received a $20,000 raise to counter a job offer she received from a competing firm.
• D)Carl,a union member,earns $20,000 more than a worker who is not a member of the union.

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Definitions:

Spending Limit

The maximum amount of money a person or organization is willing to spend on a particular item, project, or overall budget.

Budget Line

A visual depiction of every combination of two items that a person can purchase, based on their earnings and the costs of these products.

Good X

A placeholder term often used in economics to denote a specific, but unspecified, commodity or product in theoretical discussions.

Good Y

A placeholder term often used in economics to denote a specific good or product under consideration in a model or theory.