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  9. Q45

SSC CHSL 2014 · Question 45 of 209

DIRECTIONS: In Questions Nos. 146-150, The diagram shows Which of the following statements is correct ?

  1. AMost workers will work for less then their reservation wage.
  2. BThe reservation wage is the maximum amount any firm will pay for a worker.
  3. CEconomic rent is the difference between the market wage and the reservation wage.Correct
  4. DEconomic rent is the amount one must pay to enter a desirable labour market.

Answer: C. Economic rent is the difference between the market wage and the reservation wage.

Explanation

wage and the reservation wage.

Source: SSC CHSL Solved Paper 16-11-2014 (Disha Publications) · reliable-secondary

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