Owners of land are compensated according to the
A)absolute level of production from the land.
B)number of laborers the land can support.
C)purchase price of the land stock.
D)value of the marginal product of land.

Question

Quizplus · Accepted Answer

Land is compensated based on its contribution to production, or the value of its marginal product. This means that the compensation is based on the additional output or value generated by the use of the land. The purchase price or number of laborers the land can support does not necessarily reflect its current or potential productivity.

Owners of Land Are Compensated According to the