What is rent seeking and how is it related to regulatory capture?
What will be an ideal response?
Rent seeking is the attempt by individuals and firms to use government action to make themselves better off at the expense of others. Regulatory capture is one way of accomplishing rent seeking, as it allows firms to influence a regulatory agency to make decisions that are in the best interest of the firms, even if these actions are not in the public interest.
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A Turkish company exchanges liras for dollars and then uses the dollars to purchase medical equipment from a U.S. company. These transactions
a. increase U.S. net exports, and increase Turkish net capital outflow. b. increase U.S. net exports, and decrease Turkish net capital outflow. c. decrease U.S. net exports, and increase Turkish net capital outflow. d. decrease U.S. net exports, and decrease Turkish net capital outflow.
The following provides information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(15,15)What are the dominant strategies for firm A and firm B respectively?
A. Neither firm has a dominant strategy. B. (low price, high price) C. (high price, low price) D. (high price, high price)
"Unfair or deceptive acts or practices in commerce" were prohibited by the
A. 1938 amendment to the Federal Trade Commission Act. B. Clayton Act. C. Clayton Act as amended by the Robinson-Patman Act. D. Federal Trade Commission Act.
Japan's Debt to GDP ratio is currently about
A) 50% B) 100% C) 150% D) 250%