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Questions › JNU › JNU SIS 2021 › Q76
0 marksMicroeconomics › Factor markets and income distribution › Distribution theory: factor shares, Euler's theorem and rentModerateabout 1 min

JNU SIS 2021 Question 76: Factor markets and income distribution

Read the problem below A family owns a plot of land and two people are needed to work on each acre of land. Each acre produces an output of Rs.6000 and each member of the family can choose to either work on the land or work elsewhere for an annual wage rate of Rs.1500. If land is leased out then labour working on it must be paid Rs.2000.

Read the problem below A family owns a plot of land and two people are needed to work on each acre of land. Each acre produces an output of Rs.6000 and each member of the family can choose to either work on the land or work elsewhere for an annual wage rate of Rs.1500. If land is leased out then labour working on it must be paid Rs.2000.

How much rent per acre can the family earn annually if the land is leased out ?

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Factor markets and income distribution has come up 55 times in 6 exams since 2006.

What this question tests

This question is on Distribution theory: factor shares, Euler's theorem and rent, part of Factor markets and income distribution in Microeconomics.

How output is divided among factors, and when payments to factors exactly exhaust output.

TestStop has 13 past-paper questions on this subtopic.

Practise Factor markets and income distributionMore on Distribution theory: factor shares, Euler's theorem and rent

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