The most important economic function of rental payments for the use of land is to:
A)assure owners of land some return for its use.
B)determine how land will be rationed into different uses.
C)assure an adequate supply of land in the society as a whole.
D)equalize the distribution of factor payments.
E)make sure that there is some land left for future use.

Question

Quizplus · Accepted Answer

Rental payments for the use of land play a crucial role in determining how land is allocated or rationed among various competing uses, based on the willingness and ability of different users to pay for its use. This mechanism helps in the efficient allocation of land resources to their most valued uses.

The Most Important Economic Function of Rental Payments for the Use