[amp_mcq option1=”Food imports check the rent from rising” option2=”rent accrues to good lands only” option3=”rent is a monopoly receipt also” option4=”rent is excess earning over the transfer earnings” correct=”option1″]<\/p>\n
The correct answer is A. Food imports check the rent from rising.<\/p>\n
Rent is a payment made to the owner of a factor of production in excess of the minimum amount necessary to keep the factor in its current use. In the case of land, rent is the payment made to the landowner for the use of the land.<\/p>\n
Food imports can affect the price of food, which can in turn affect the rent paid for land. However, food imports do not directly affect the rent paid for land. The rent paid for land is determined by the productivity of the land and the demand for land.<\/p>\n
Option B is true. Rent accrues to good lands only. This is because good lands are more productive and therefore command a higher rent.<\/p>\n
Option C is also true. Rent is a monopoly receipt also. This is because the landowner has a monopoly on the use of the land.<\/p>\n
Option D is also true. Rent is excess earning over the transfer earnings. This is because the rent paid for land is in excess of the minimum amount necessary to keep the land in its current use.<\/p>\n","protected":false},"excerpt":{"rendered":"
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