Asked by Dominic Gomez on May 28, 2024
Verified
The characteristic that makes economic rent distinct from wages, interest, and profit is that it is
A) payment for a resource that is completely fixed in total supply.
B) always expressed in dollars, never in percent.
C) fixed by annual or monthly contracts.
D) makes the supply of the resource increase if its rent rises.
Economic Rent
The excess payment made for a factor of production over its opportunity cost.
Total Supply
The total amount of a product or service available for purchase at any given price point.
- Become familiar with the concept of economic rent and its contribution to incentive systems and resource allocation.
Verified Answer
BW
Brittnay WhiteJun 01, 2024
Final Answer :
A
Explanation :
Economic rent is distinct because it is a payment for a resource that is completely fixed in total supply, such as land. Unlike wages, interest, and profit, economic rent does not vary with the quantity of the resource available.
Learning Objectives
- Become familiar with the concept of economic rent and its contribution to incentive systems and resource allocation.