2 marksThe Demand for and Supply of Factors

CAPE Economics Unit 1 · 2006 · Paper 1 · Question 12(c)

Define the terms 'transfer earnings' and 'rent'.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

12(a)Define the term 'value of the marginal product of labour' (marginal revenue product of labour).[2 marks]
12(b)Explain why a perfectly competitive firm will pay a wage equal to the value of the marginal product of labour.[2 marks]

More practice: the rest of this paper · more The Demand for and Supply of Factors questions · all CAPE Economics Unit 1 past papers