RICARDIAN THEORY OF RENT
How Does Relit Arise?
More than a century ago. David Ricardo supplied the answer in the Theory of Rent associated with his name. Ricardo defined rent as follows: “Rent is that portion of the produce of thc earth which is paid to the landlord for the use of thc uriginal and iudestructible pU\\’CJ’s of the soil.” Economic rent, according to Ricardo, is the true surplus left after the expenses 01 cultivation as represented by payments to labour, capital and enterprise have been met