Question

1. (True or False) Kobe Bryant was a highly paid professional basketball player in the National Basketball Association. From the perspective of the whole NBA, Kobe’s economic rent would be very small, while from the perspective of his individual team it would be very large.

Give an explanation.

Answer 1

True.

Kobe Bryant may be willing to work for $ 18 an hour, but because he belongs to an association, he gets $ 15 an hour for a job. The difference of $ 3 is the worker's economic rent, which can also be called unearned income. In this regard, unearned income refers to the amount that is paid to an employee who realizes that their skills and abilities are of value in the current market. This may also apply when a person's skills are given less importance in an open market, but is associated with a group of associations of the poor, such as a union.

As another example, the owner of a property in a particular mall may be willing to rent it for $ 10,000 a month, but monthly rupees for $ 12 can be purchased at will. Secure it and the Forester competition. The difference of $ 2,000 in this case is the owner's economic rent.It may also refer to a situation where there are two properties with the exact same characteristics except for the location. If one position is better than another, the owner of the preferred position receives higher pay than the other without completing any additional work. Lack of additional work by the owner can also be considered an unearned income.