JAMB - Commerce (2017 - No. 18)
What is the reward accruable to land?
Rent
profits
wages
Interest
Uitleg
Since land is a free gift of nature, it doesn't require any cost to be paid in order to make it available to the society for use.
As the quantity of land available for use is scarce relative to demand, a price must be paid for its use. Hence, the view point of the society , the earnings of land becomes economic rent.
As the quantity of land available for use is scarce relative to demand, a price must be paid for its use. Hence, the view point of the society , the earnings of land becomes economic rent.