What is "rent seeking?" How does it apply to restricting imports?
What will be an ideal response?
Rent seeking is lobbying and other political activity that seeks to capture the gains from trade. When imports are restricted, some people gain from the restrictions. Rent seekers, such as domestic producers of import-competing goods or services, lobby the government to impose import restrictions because restrictions allow the rent seekers to gain revenue and/or profit.
You might also like to view...
The self-interest model of government:
a. suggests that government officials are selfish. b. explains why there are limits on government taxation and spending. c. shows who some government projects take place even if the cost exceeds the benefits. d. All of the above.
If an American firm produces goods that are sold to a German household, then
A) German GDP increases but not U.S. GDP. B) U.S. GDP increases. C) the transaction is considered an export in the German GDP accounts. D) net exports in the United States will not change because an export immediately generates an offsetting import.
Some economists and policymakers criticized the Fed for taking too much time understanding and identifying the problems in financial markets which led to the financial crisis of 2007-2009
This criticism best describes the ________ as a limitation of monetary policy. A) implementation lag B) recognition lag C) impact lag D) asymmetry lag
Why would a landlord most likely give a tenant an incentive to leave a rent-controlled apartment?
a. to attract tenants will lower incomes b. to remodel the apartment and list it at a higher rent c. to provide the tenant with start-up money for a business d. to repair the apartment so it will pass the government code