Give three different examples of rent-seeking behavior
Please provide the best answer for the statement.
The examples can vary but the following three are possible: (a) farm organizations that lobby the Federal government for an increase in spending on agricultural price supports from which their members will benefit; (b) automobile manufacturers that seek subsidies for car owners to trade in their old car and purchase a new car; and (c) the home construction industry seeking tax credits for first-time home buyers that increase the demand for new homes.
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Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do?
A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information before making a decision.
The marginal propensity to consume tells us the intercept of the consumption function
a. True b. False
Value judgments are based on people’s tastes, preferences, and ethical opinions.
Answer the following statement true (T) or false (F)
A perfectly price-discriminating monopolist:
A. increases both consumer surplus and producer surplus. B. reduces or eliminates the welfare loss from monopoly. C. creates more consumer surplus for the consumer. D. increases the welfare loss from monopoly.