Chapter 3, Problem 11AA

Solution

Factors that affects the person’s earning power are to be explained.

There are four factors that affects the individual's earning power:

1.Education: Education is an important factor that affects the earning of an individual. The number of years of education directly affects the income. Higher the education, higher will be the income as compared to the less educated individual.

2. Occupation:The kind of job also affects the income of an individual. The person working in rural areas will earn less than the person working in urban areas.

3. Experience: The person with more experience in a particular job profile will earn more than the person with less experience.

4. Health: When the person is healthy, they would be more productive and efficient in their job and will earn more than the person who is not healthy.