Rent seeking ________
A) increases consumer surplus
B) occurs only when the firm practices perfect price discrimination
C) increases deadweight loss
D) results in a larger output than a competitive industry would produce
C
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In the short run, a constant (as a percentage of profits) corporate income tax imposed on a monopolist will _____
a. cause capital to flee the industry b. cause output to fall c. leave output unchanged d. cause output to rise
The way in which a country benefits from trade is that it can
a. obtain goods at lower opportunity cost than producing them itself. b. exploit economies of scale in production and lower the cost of goods it produces. c. obtain a wider range of goods than it can produce for itself. d. All of the above are benefits.
Economics alone cannot determine the best way to balance the goals of efficiency and equity
a. True b. False Indicate whether the statement is true or false
Under a system of fixed exchange rates, excess demand by Germans for the Swiss franc represents a potential
A. German balance-of-payments deficit with Switzerland. B. German balance-of-payments surplus with Switzerland. C. German trade surplus with Switzerland. D. Swiss trade surplus with Germany.