Asked by Ja'Nayla Watts on May 28, 2024
Verified
Economic rent, or pure rent, is
A) a payment made for the use of housing, factory buildings, or capital goods.
B) a payment for resources used in the production of "free goods."
C) a payment for the use of those resources whose supply is perfectly elastic.
D) the price paid for the use of land and other nonreproducible resources.
Economic Rent
A payment made for the use of a good, service, or resource above and beyond what is necessary to encourage its production or supply.
Nonreproducible Resources
Natural resources that cannot be replaced or regrown at a pace that matches their consumption.
Perfectly Elastic
Refers to a situation in demand or supply where quantity changes infinitely with any change in price.
- Familiarize oneself with the concept of economic rent and its role in encouraging specific behaviors.
Verified Answer
YG
Yissel GomezMay 31, 2024
Final Answer :
D
Explanation :
Economic rent, or pure rent, is specifically the price paid for the use of land and other nonreproducible resources. These resources are unique in that their supply is fixed, or inelastic, meaning they cannot be easily reproduced or increased in quantity.
Learning Objectives
- Familiarize oneself with the concept of economic rent and its role in encouraging specific behaviors.
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