7 Calculate the maximum land valuecan be paid by propritor y

7 Calculate the maximum land valuecan be paid by propritor yearly net product value produced by 40000 Fances each plot Yearly tax paid by each proprietor Net amount received by proprietor each |28000 12000 Fances Less Fances year Rate of return/ Per year 4% Maximum value of land Frances 700,000.00 ( 28000 Frances/4%

Solution

Answer for 9

According to Physiocrats, Agriculture is only field which produces net product rather manufacturing and industries .

The sector which produces net product can create wealth and all other sectors are auxiliaries.

In the valuation of this land tax value is already factored hence in resultant way there is no tax will be paid by buyer.