[amp_mcq option1=”Differential rent” option2=”Scarcity rent” option3=”Mobility rent” option4=”Location rent” correct=”option4″]
The correct answer is D. Location rent.
Differential rent is the excess of the rent paid for a particular piece of land over the rent that would be paid for a similar piece of land in a less desirable location. Scarcity rent is the rent that is paid for a scarce resource, such as land in a desirable location. Mobility rent is the rent that is paid for the ability to move to a more desirable location.
Location rent is not a type of rent because it is not paid for the use of land. It is paid for the location of the land, which is a different thing.