Asked by Chris Huynh on Apr 27, 2024

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Henry George thought that

A) landowners deserve the economic rent that their land holdings provide.
B) a single tax on land equal to the unearned surplus that landowners receive would pay for all needed government.
C) economic inefficiency would result from a tax on the unearned surplus that landowners receive annually.
D) landowners bear most of the costs associated with economic growth.

Economic Rent

Income earned from the possession of a unique asset or advantage not due to individual effort or investment, such as land ownership or patents.

Unearned Surplus

Income derived from investments rather than from work or productive activity.

Henry George

Henry George was an American political economist and journalist who advocated for the "Single Tax" on land, arguing that this would reduce economic inequalities and promote social justice.

  • Understand the basics of rent theory and its significance in shaping economic policies and outcomes.
  • Understand the effects of taxing land and the economic outcomes that result.
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KF
Keili FullingtonApr 29, 2024
Final Answer :
B
Explanation :
Henry George believed that a single tax on land, equal to the economic rent or unearned surplus that landowners receive, would be sufficient to fund all necessary government functions. He also argued that landowners do not deserve this rent as it is a product of societal and natural factors beyond their control, and that such a tax would actually increase efficiency by eliminating the incentive to hoard land for speculative purposes.