Pharmaceutical development provides a good example of rent-seeking behavior, the pursuit of which results in _______.
a. lower economic activity by diverting resource to less-productive uses
b. lower prices throughout the economy
c. increased economic activity by promoting efficiency
d. a more equitable distribution of income and wealth
e. greater income and wealth in the private sector
a. lower economic activity by diverting resource to less-productive uses
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Assume that there is rent control in Chicago. Which of the following is true?
A) All consumers in the rental market will benefit because the rent will be lower. B) The total surplus will fall because there will be a shortage of apartments. C) The total surplus will rise because consumer surplus will increase. D) Consumer surplus will increase and as a result all consumers in the rental market will benefit.
A local government would not be efficient in providing which of the following services?
A. International aid B. Police protection C. Fire protection D. Roads
Which of the following criticisms is NOT directed to the IMF?
A) It lacks openness in its decision-making process. B) It serves the interests of wealthier countries. C) It creates a free-riding problem. D) It violates national sovereignty. E) It is heavily bureaucratic and at times gives harmful advice.
Keynesians tend to believe that
A. laissez-faire policies stabilize market economies. B. monetary restraint aggravates inflationary pressures. C. massive government spending and tax cuts are cures for recession. D. expansionary monetary policy revives an economy from recession.