One example of Ricardian rent is:
A)rent paid to landlords under price controls.
B)the difference between the price of a highly demanded unique piece of artwork and the opportunity cost of maintaining it.
C)the amount paid to a seller above the equilibrium price of tourist class tickets in order to receive higher quality seats in first class.
D)the price rise of wool from a disease among sheep.

Question

Quizplus · Accepted Answer

Ricardian rent refers to the extra payment made to a factor of production (such as a landlord) due to its unique and scarce nature. In this case, the highly demanded artwork is scarce and unique, so the extra payment made for it is a form of Ricardian rent. A is incorrect because rent paid under price controls is not determined by supply and demand and does not necessarily reflect the unique and scarce nature of the rented property. C is incorrect because the extra payment for first class seats is not due to their unique and scarce nature, but rather their higher quality. D is incorrect because the price rise due to the disease is not a form of extra payment for a unique and scarce factor, but rather a market disruption caused by a supply shock.

One Example of Ricardian Rent Is