Economic Rent
Subject: Economics | Topics:

Economic Rent is differs from the traditional use of the word “rent,” which applies to payments received in exchange for temporary use of a particular good or property. It is an excess payment made to or for a factor of production over the amount required by the property owner to proceed with the deal. Economic rent should not be mistaken for the more commonly used ‘rent’ term, which simply refers to payments made for using an asset or property. It can be thought of as more of a surplus amount. Economic rent is different from other unearned and passive income, including contract rent.

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