Microeconomics · free preview
Land, Capital and the Top Tail
Land's fixed supply earns pure rent, capital is priced by its marginal product with saving as its supply, factor shares tell who is paid what, and superstar markets pay the top tail by the millions.
1. Rent for what cannot be made more of
Rent for what cannot be made more of
2. Capital's market
Capital's market
3. Factor shares and the top tail
Factor shares and the top tail
4. The module's ledger
The module's ledger
5. Rent's logic
Why does a tax on pure land rent cause no deadweight loss?
6. Winner take all
Why do a handful of software engineers, singers and fund managers earn orders of magnitude more than equally skilled peers in other trades?
7. The rent of a fixed plot
A vineyard site earns 40 thousand a year in rent, and the next-best use of the identical land would earn 5 thousand. Compute the site's pure economic rent in thousands, and write the number.
8. The painless tax
Why does a tax on pure land rent cause no deadweight loss?
9. The superstar engine
Why do a handful of software engineers, singers and fund managers earn orders of magnitude more than the next tier?
10. The site's economic rent
A vineyard site earns 52 thousand a year in rent, and the identical land in its next-best use earns 12 thousand. Compute the site's economic rent in thousands, and write the number.
Practice this interactively
Free account · instant grading · spaced review that schedules itself.
Start this course for free