Exhibit 29-4

-Refer to Exhibit 29-4. If a per acre tax, T, is imposed on land use, the pure economic rent on land will

Question

Exhibit 29-4
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-Refer to Exhibit 29-4. If a per acre tax, T, is imposed on land use, the pure economic rent on land will

Quizplus · Accepted Answer

A per acre tax on land use would decrease the pure economic rent on land because the tax effectively reduces the net income (or rent) that can be derived from the land. Pure economic rent is the income earned from land or other resources in perfectly inelastic supply, and a tax would reduce the owner's earnings from that resource.

Exhibit 29-4 ​

Exhibit 29-4