Recall the Application about the Native American Tribes in Michigan that had a monopoly in casino gambling to answer the following question(s).Recall the Application. The tribes agreed to pay the state a share of their profits in exchange for being granted a monopoly in casino gambling. What economic concept does this illustrate?
A. profit maximization
B. rent seeking
C. irrational behavior
D. None of these
Answer: B
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When the free-rider problem occurs in a market for a good, what is true of the quantity of the good supplied relative to the efficient quantity of the good?
A. The good is typically oversupplied in a market where the free-rider problem occurs. B. When the free-rider problem occurs, the good can be provided completely free of charge. C. The good is typically undersupplied in a market where the free-rider problem occurs. D. The good is typically efficiently supplied in a market where the free-rider problem occurs.
Changes in taxes and transfers affect planned spending:
A. indirectly, by changing disposable income and, consequently, consumption. B. directly, by changing induced expenditures. C. autonomously. D. only when there is an expansionary gap.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. higher; potential B. lower; higher C. lower; potential D. higher; higher
Other things equal, a broad shift to expecting depreciation of the euro will lead to
A. an increase in official exchange market intervention by the euro area monetary authorities. B. an inflow of capital to Europe. C. a lowering of exports of European goods and services. D. a decrease in the demand for euro-denominated financial assets.