-What does the term economic rent mean?
A)The return to a factor of production that has a perfectly elastic supply.
B)The return to a factor of production that has a perfectly inelastic supply.
C)The return to labour.
D)The return to landlords.

Question

-What does the term economic rent mean?
A)The return to a factor of production that has a perfectly elastic supply. 
B)The return to a factor of production that has a perfectly inelastic supply. 
C)The return to labour. 
D)The return to landlords.

Quizplus · Accepted Answer

Economic rent refers to the extra income earned by a factor of production (like land, labor, or capital) due to its limited supply, where the supply is perfectly inelastic. This means the factor earns more than what is necessary to bring it into production.

-What Does the Term Economic Rent Mean