Title: What is rent? Definition and some examples - Market Business News
Headings: What is rent? Definition and meaning
What is rent? Definition and meaning
Economic rent – another example
What is land?
Two farmers
What is rent-seeking
Closed-shop systems
The wealth pie does not grow
Government corruption and rent-seeking
Video – What is economic rent?

Content: The difference in land quality for wheat production is the sole reason for the $500 gap between the two farmers. They both used identical agricultural methods, i.e., Farmer Giles did nothing to earn those extra $500 – it was a free gift from nature. Therefore, we class the $500 as economic rent that Farmer Giles earned in excess of what Farmer Jones received. Farmer Jones has also earned some economic rent because without land he would have had no wheat. However, we cannot determine the economic rent without a reference, because even though he earned $500, a proportion of that money came from his efforts (labor) and whatever he spent on agricultural tools and machinery (capital). What is rent-seeking
In public-choice theory and economics, rent-seeking refers to trying to increase one’s share of existing current wealth without creating any new wealth. If you use the resources of an individual, company or any organization to obtain economic gain from others – to make yourself richer – but do not reciprocate any benefits to society through wealth creation, you are rent-seeking. When a company lobbies the government for grants, tariff protection, or loan subsidies, it is rent-seeking. None of these things create any benefit for society. The company does not create any extra wealth.