During the 1992 presidential campaign, H. Ross Perot made much of the various “special interests” which lobby in Washington, D.C. How might an economist view this? Which specific market breakdown may occur if there is lobbying? Relate your answer to the study of monopoly and oligopoly.
What will be an ideal response?
Lobbying may be a manifestation of rent seeking, that is, seeking a higher rate of return by restricting entry or otherwise limiting the free movement of resources in pursuit of profits. This can be an example of a government restriction serving as an entry barrier, leading to continued long-run economic profit for the resulting monopolistic or oligopolistic market structure.
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Majority of international migrants move to:
A. The U.S. and Canada B. Western Europe C. Countries relatively close to their home countries D. Japan and Australia
If the nominal interest rate is higher than the real interest rate, then inflation must be:
A. zero. B. higher than the nominal rate of interest. C. positive. D. negative.
Suppose we import only one good from Germany: cars. Initially, the exchange rate is $0.60 per euro. We import 150,000 cars annually, priced at 70,000 euros each. Then the euro rises to $0.625. Assuming the dollar value of our exports to Germany remains constant, we will stop moving down the J-curve and "turn the corner" to move upward along it once we import ______________ German cars per year
A) fewer than 150,000 B) fewer than 144,000 C) fewer than 93,750 D) more than 150,000 E) more than 156,250
The person most likely to receive a payment from a corporation in a year of losses is the
A) bondholder. B) common stockholder. C) preferred stockholder. D) investment banker.