Question 1
John Smith plays baseball for $500 000 per year, but if he were not a baseball player, his next best alternative would be to earn $35 000 per year as a sales representative. By playing baseball, Smith is earning economic rent of
◦ $35 000.
◦ zero.
◦ $535 000.
◦ $500 000.
◦ $465 000.
Question 2
Which of the following would be least likely to earn economic rent?
◦ John Smith, an auto-plant worker in Oshawa, Ontario
◦ Lady Gaga
◦ an owner of land located on Yonge Street, near downtown Toronto
◦ a university professor who loves every bit of his job
◦ Robert Bateman, famous wildlife artist
economic question
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