Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Economic rent may be called any sum or monetary amount which surpasses anything that is socially or economically required. This may take place whenever any buyer looking to get any exclusive service/product, gives an offer before hearing about the price that is acceptable. Imperfections in the market often lead to economic rent going up.
Economic rent is the monetary amount which surpasses any necessity, both socially and economically. This is created through asymmetries in information or inefficiencies in the market. Economic rent is not earned in most cases. It may appear in the contexts of things like real estate and property, labor markets, monopolies, and so on. Suppose the property owner in any exclusive zone wishes to rent it out for a sum of Rs. 2 lakh each month, although another entity which wants to get the property, offers Rs. 4 lakh every month, in order to stave off competition. The difference of Rs. 2 lakh is the economic rent in this case. It may also indicate scenarios where two properties have the exact features, although they have different locations. Now, if the owner of a more coveted location gets a higher payment amount than the other, then it means unearned income or economic rent.
