Economic rent refers to the payment above the minimum necessary to make an input available to the economy. It is the surplus over and above the cost of production that accrues to an owner or producer of a factor of production, such as land or capital.

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Economic Rent Is a

Question 48

Multiple Choice

Economic rent is a

A) payment above the minimum necessary to make an input available to the economy.
B) price of an apartment or other leased building.
C) tax imposed by the government on property.
D) payment for free resources such as air and water.
E) payment for an input that has many close substitutes readily available.

Correct Answer: