Asked by Songqing Jiang on Jun 28, 2024
Verified
Economic rent is paid
A) only to landlords.
B) to resources which would be made available for lower payments.
C) illegally.
D) only in socialist economies.
Economic Rent
The excess payment to a resource above what it is necessary to pay to secure its use.
Landlords
Individuals or entities who own property that is rented or leased to others, receiving rental income in return.
Socialist Economies
Economic systems in which the means of production, distribution, and exchange are owned or regulated by the community as a whole, typically through the government.
- Comprehend the concept of economic rent and its applicability to various resources.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
B
Explanation :
Economic rent is an excess payment made to a resource or factor of production over and above what is necessary to keep it in its current use. This means that economic rent can be paid to any factor of production, not just landlords. Economic rent is also not illegal and is present in all types of economies, including capitalist ones. The correct answer is, therefore, B.
Learning Objectives
- Comprehend the concept of economic rent and its applicability to various resources.