The concept of economic rent is associated with the British economist David Ricardo (1772-1823). Ricardo analyzed economic rent for land. Which of the following is FALSE with respect to determining land rent?

Question

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Payment for a resource below its opportunity cost is not considered rent according to Ricardo's concept of economic rent. Rent is payment above an input's opportunity cost, which is the next best alternative foregone. A is true because the supply of land is fixed in the short run. D is also correct because Ricardo assumed that land is a fixed and immobile factor of production. B is a correct statement of the concept of economic rent.

The Concept of Economic Rent Is Associated with the British