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Commerce · Q166

Economics

Graduate and Post Graduate · Commerce · question 166

Q166

As for the cost of production of an individual farmer, the rent paid by him

A.
Enters into the price of his product
Answer
B.
Does not enter into price of his product
C.
Is unjustified
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
As for the cost of production of an individual farmer, the rent paid by him enters into the price of his product. The classical political economists found value to be determined in production; since most of the cost of production could be reduced to labor, this approach was refined into the Labor Theory of Value.