In this article we will discuss about:- 1. Definition of Economic Rent 2. The Division of Total (Factor) Incomes 3. Determinants of the Division. Definition of Economic Rent: In economics rent refers to producer's surplus. It is different from contract or commercial rent, which refers to the price paid to hire something, such as a machine or a piece of [...]
The following article will guide you about how there can be a rent element in the remuneration of any factor. Also learn about the definition of rent. Rent Element in All Factor Incomes: Ricardo restricted his theory of rent to the income from land only. In his opinion, rent of land arises owing to the fixed supply of land and [...]
In this article we will discuss about the relationship between rent and economic progress. The amount of rent earned is influenced by various factors. If the population of the country increases the demand for agricultural crops increases. This leads to the cultivation of inferior lands. The market price rises and the superior plot of land earns more rent. When the [...]