The welfare costs of rent seeking will approximate _____
a. the value of the resources expended in lobbying
b. the deadweight loss of taxation
c. the value of the rent-seeking benefits
d. zero if political markets are perfectly competitive
c
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In the long run, monopolistically competitive firms are ________ to perfectly competitive firms because ________
A) similar; both firms produce at the minimum ATC B) similar; both firms make zero economic profit C) not similar; monopolistically competitive firms set P = MC to maximize profits D) not similar; monopolistically competitive firms can make an economic profit and perfectly competitive firms cannot
Compared to a situation in which there is no change in the value of the dollar relative to the peso, in which of the following situations would you be worse off?
A) you borrow $10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars B) you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars C) you borrow 10,000 pesos, you earn income in dollars, the dollar appreciates against the peso, you must pay back the loan in pesos D) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos
An example of entitlement spending is:
A. national defense. B. Social Security. C. police protection. D. garbage collection.
When beneficial externalities are present in a market, the actual output will be
a. greater than the optimal output. b. smaller than the optimal output. c. equal to the optimal output. d. either smaller or greater than the optimal output.