Problem
1. How does the economist's use of the term "rent" differ from everyday usage? Explain: "Though rent need not be paid by society to make land available, rental payments are very useful in guiding land into the most productive uses."
2. KEY QUESTION Explain why economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual firms and industries. Explain: "Land rent performs no ‘incentive function' for the overall economy."
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.