Lebron James, basketball player with the Cleveland Cavaliers, signed a contract for roughly $100 million. James would be willing to play for only $100,000 . An economist would argue that James is receiving $900,000 in wage-related rent

In the figure above, if the minimum wage rate is $8 per hour, then after taking account of resources lost in job search, the workers' surplus is the area ________ and the firms' surplus is the area ________

A) e; c B) d; b C) a; f D) f; a E) a + b + c + d + e; f

Explain the following terms:

i. Compound returns ii. Principal iii. Rate of return on an investment iv. Holding period