Answer to Question #59518 in Economics for UMER RAFIQ

Question

Discuss whether or not the three payments are income from

personal exertion. Would your answer differ if she wrote the

story for her own satisfaction and only decided to sell it later?

Answer 1

The Daily Terror newspaper offers her $10,000 for her life story, she also sells the manuscript to the Mitchell Library for $5,000 and several photographs for $2,000. These three payments are income from personal exertion, because the book was written personally and the rights, manuscript and photos were sold in accordance with the law. If she wrote the story for her own satisfaction and only decided to sell it later, the situation will be the same.