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Two workers, X and Y, are roofers working on the same wage for the same firm. X earns more economic rent than Y. Which of the following statements is false?

a) X has lower transfer earnings than Y.

b) Because Y is earning some economic rent, the firm which hires Y could reduce the wage and Y would continue to work for that firm.

c) If the wage for roofers generally fell enough to persuade Y to take up another occupation, X might continue to be a roofer.

d) If we add up X's economic rent and transfer earnings, we would get the same figure we would get if we add up Y's economic rent and transfer earnings.

Macroeconomics, Economics

  • Category:- Macroeconomics
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