Rent-seeking behavior refers to
A. the offering of goods on a for-rent rather than for-sale basis.
B. profit maximization by producers.
C. unproductive activity in the pursuit of economic profit.
D. illegal manipulation of prices.
Answer: C
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In what way are other assets less liquid than money?
What will be an ideal response?
Specialization of labor
a. increases productivity without creating any problems b. reduces productivity, and is usually eliminated by business firms c. can create problems of boredom and repetitive motion injuries d. prevents the introduction of more sophisticated and efficient production techniques e. ignores individual preferences and natural abilities
What is a natural monopoly? Why is government justified in regulating a natural monopoly?
If policy makers do nothing in a recessionary gap, the most likely outcome is a
a. drop in the inflation rate and a rise in the unemployment rate. b. drop in the inflation rate and a drop in the unemployment rate. c. rise in the inflation rate and a drop in the unemployment rate. d. rise in the inflation rate and a rise in the unemployment rate.