What does David Ricardo define land rent as?

Study for The Evolution of Planning Test with various question types, hints, and explanations. Boost your preparation and success rate!

David Ricardo defines land rent as the portion of produce that is paid to the landlord. In his theory, rent arises from the inherent productivity differences of land. Specifically, the more fertile or better-located land yields more produce, allowing landlords to charge a rent based on the surplus produced beyond what is required to cover costs of production. This means that land rent is intrinsically linked to the economic value derived from the land's capabilities, rather than labor or profit generated solely from farming activities. This foundational concept illustrates how land, as a resource, possesses value that can be captured through rent, particularly in relation to its efficiency and productivity in comparison to other lands.

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