The fewer alternative uses a resource has,
A)the greater the proportion of its earnings that is economic rent
B)the smaller the proportion of its earnings that is economic rent
C)the more elastic its supply
D)the more elastic its demand
E)the less elastic its supply

Question

Quizplus · Accepted Answer

Economic rent is the surplus income earned by a resource or factor of production over and above the minimum income necessary to keep it in its current use. The more alternative uses a resource has, the greater the competition for its use, and the lower the economic rent. Conversely, the fewer alternative uses a resource has, the less competition there is for its use, and the greater the proportion of its earnings that is economic rent.

The Fewer Alternative Uses a Resource Has