XI. THE RENT AND VALUE OF FARM LAND 



QUESTIONS 



i. What is meant by " distribution " in the language of the 

 economist ? Distribution of what ? 



2. It has sometimes been said that distribution is the only really 

 important problem in practical economics. Is this true? Is the 

 amount to be distributed something about which we need not worry 

 or over which we have no control ? 



3. What relation does this section bear to the section dealing with 

 production ? to that which deals with consumption ? Can you show 

 how good distributive conditions would improve conditions of pro- 

 duction ? 



4. Who are the parties to distribution? By what mechanism, 

 devices, or institutions is the process of distribution effected ? What 

 is an economic institution ? 



5. State briefly the so-called Ricardian doctrine of rent. What 

 is meant by "original and indestructible powers of the soir' ? (Look 

 back to chapter iii, particularly Section C, in answering this question.) 



6. What is meant by a "differential" return? Under what con- 

 ditions will there be no differential ? Would we then have a no-rent 

 society ? 



7. Is such a condition a practical possibility? Do we have rent 

 at the same time 'at which there are unused lands ? fertile lands which 

 are unused ? 



8. What is the margin above which differential productivity is 

 measured ? Are we concerned about physical productivity or value 

 productivity ? 



9. When we talk about using the "best" land first, do we neces- 

 sarily mean the most fertile? What advantage may lead to its 

 employment in advance of other land ? 



10. In general, what will be the trend of prices of the product 

 when poorer and poorer areas of land are taken into cultivation? 

 What effect will this have upon the returns of better tracts? 

 upon rent ? 



11. Do high rents and high prices of agricultural products go hand 

 in hand? Can you identify one as cause and the other as effect? 

 Which is which ? 



12. Show clearly the application of the principle of diminishing 

 returns to the case of land rent. Is there an intensive as well as an 

 extensive margin from which we measure differential returns and 

 compute rent ? (See Problem 7, chap, iii.) 



58 



