The more specialized and highly valued a worker's skills are,
A)the lower is the worker's stock of human capital.
B)the more likely the worker is to earn economic rent.
C)the less likely the worker is to sell the skills on the primary labor market.
D)the more likely the worker is to be directly affected by minimum wage legislation.

Question

Quizplus · Accepted Answer

Economic rent refers to the income earned by a factor of production (in this case, a worker) that exceeds the minimum amount required to keep it in its current use. The more specialized and highly valued a worker's skills are, the more scarce they are in the labor market, making it more likely that the worker can earn a higher income (i.e. economic rent) as a result of their unique abilities.

The More Specialized and Highly Valued a Worker's Skills Are