The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-The earnings of which of the following resources comprises entirely of economic rent?

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-The earnings of which of the following resources comprises entirely of economic rent?

Quizplus · Accepted Answer

Coal is a nonrenewable resource with a limited supply. As a result, its price is driven purely by its scarcity and demand, meaning that the earnings of those who own and supply it comprise entirely of economic rent - they are able to charge above what is necessary to cover their costs of production. Unskilled labor, timber, water, and biomass all have alternative uses and are not in scarce supply, so the earnings of those who supply them are not purely composed of economic rent.

The Figure Given Below Shows the Demand [D and D']