In this article we will discuss about the modern the theory of rent. The modern economists have generalised the term 'rent'. In truth, there exists rent in the earning of the every factor of production and it is identified with surplus income. Transfer Earnings and Economic Rent: The amount that a factor must earn in its present use to prevent [...]
Let us make an in-depth study of the Ricardian Theory of Rent:- 1. Subject-Matter of Ricardian Theory of Rent 2. Assumptions of the Ricardian Theory of Rent 3. Explanation 4. Criticism. Subject-Matter of Ricardian Theory of Rent: The Ricardian Theory of Rent was propounded by David Ricardo a brilliant economist of England in 19th century. This theory can be said [...]
The following points highlight the three prepositions of Modern Theory of Rent. The prepositions are: 1. Scarcity Rent 2. Rent is a Generalized Surplus: Earned by all Factors 3. Measurement of Rent with Reference to Transfer Earnings. Prepositions # 1. Scarcity Rent: Modern economists are of this opinion that the main shortcoming of the Ricardian theory of rent is that [...]