Encyclopedia > Economic rent

Article Content

Economic rent

In economic theory, economic rent is a payment to a factor of production in excess of that which is needed to keep it employed in its current use.

For example, if someone is earning $20,000 for a job, and the next best job pays $15,000, then the economic rent is the difference between the two of $5,000.

All Wikipedia text is available under the terms of the GNU Free Documentation License

Search Encyclopedia

Search over one million articles, find something about almost anything!

Featured Article

Flapper

... and covered the ears with curls. Flappers did away with their corsets and pantaloons[?] in favor of "step-in" panties. They also wrapped cloth across their breasts in ...