The concept of 'Economic Rent' in classical economics refers to: MCQ with Answer and Explanation

The concept of 'Economic Rent' in classical economics refers to:
A. Profit of the entrepreneur
B. Payment for the use of land arising from its scarcity
C. Payment for the use of capital only
D. Wages of labour
Answer: Option B
Solution (By JKSSB Mock Tests)
In classical economics, economic rent is the payment made for the use of land (or other resources in fixed supply) that arises due to its scarcity and differential fertility.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on event management services is:
A. 28%
B. 5%
C. 12%
D. 18%

Correct Answer: Option D


Explanation:
Event management services attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on aerated drinks is:
A. 12%
B. 5%
C. 28% plus cess
D. 18%

Correct Answer: Option C


Explanation:
Aerated drinks attract 28% GST plus compensation cess.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Fiscal Consolidation' refers to:
A. Policies aimed at reducing fiscal deficit and public debt
B. Only printing more money
C. Increase in government expenditure without regard to revenue
D. Only increasing tax rates

Correct Answer: Option A


Explanation:
Fiscal consolidation refers to policies and measures undertaken to reduce the fiscal deficit and put public finances on a sustainable path.

This question belongs to: Economy GK Economy Set 1