J.P. owns an oil company. He spends a great deal of money supporting political campaigns and taking elected officials hunting and fishing on his land. He hopes that by doing this, he can persuade them to grant him permits to drill in normally restricted areas. J.P. is engaging in ______.
a. rent seeking
b. logrolling
c. rational ignorance
d. public choice
a. rent seeking
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Carefully define the following terms and explain their importance to the study of economics. a. Resources b. Rational decision c. Scarcity d. Opportunity cost
What will be an ideal response?
According to the Lucas critique, what is the proper way to evaluate a proposal that reduces government borrowing by raising taxes and reducing government spending?
What will be an ideal response?
Based on the graph showing the effective federal funds rate, the rates in the early 2000s were ______.
a. the lowest in over 40 years
b. the highest in over 40 years
c. about the average for the past 40 years
d. the only negative rates in over 40 years
Refer to the above figure. The firm that produces an output between Q1 to Q2 is experiencing
A. economies of scale. B. constant returns to scale. C. diseconomies of scale. D. diminishing marginal product.