Which of the following statements about rent seeking is false?
A) A person is engaging in rent-seeking behavior when he uses the political process to acquire ownership of a resource that belongs to the public.
B) If a firm can benefit from government intervention in the economy, it is more likely to spend resources attempting to secure this intervention than toward innovating its product to gain a competitive edge in the market.
C) Because rent seeking redistributes society's resources, anyone engaging in such behavior is violating the law.
D) Rent seeking often involves governments because governments transfer huge amounts of funds that economic agents must compete for.
C
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A) moral hazard B) adverse selection C) network externality D) negative externality
Since 1970, the U.S. Gini ratio has
A) increased. B) decreased. C) increased and then decreased. D) decreased and then increased.
An oligopoly
a. has a concentration ratio of less than 50 percent. b. is a price taker. c. is a type of imperfectly competitive market. d. has many firms rather than just one firm or a few firms.
What do we mean when we say that some technological knowledge is not proprietary?