Critics of the huge net returns on, for example, oil production will claim that the returns are
A)interest on the capital investment.
B)rents on a natural resource.
C)profits on entrepreneurial activity.
D)exorbitant and should be taxed away.

Question

Quizplus · Accepted Answer

The term "rents" refers to the income earned from a natural resource or other assets for which the owner didn't have to put in much effort to create. Therefore, since oil is a natural resource, the huge returns on oil production can be considered rents.

Critics of the Huge Net Returns On, for Example, Oil