The term 'rent' as it is used by economists. refers to ?
Correct answer: A. the return to any factor of production that is in fixed supply
- A. the return to any factor of production that is in fixed supply
- B. the profit earned by the owner of any housing unit.
- C. the amount paid each year by a tenant for an apartment
- D. any profit earned by stockholders when they sell their stock
Explanation
Economic rent is the payment to a factor whose supply is fixed or highly inelastic, such as land. Payments made specifically for apartments or profits from selling shares are narrower uses of the word, not the general economic definition.
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