Rent seeking is inefficient logrolling leads to a misallocation of resources
a. True b. False
b
You might also like to view...
When a perfectly competitive, well-functioning market is in equilibrium:
A. total surplus is maximized. B. the market is efficient. C. deadweight loss is zero. D. All of these are true.
Why do economists study sports teams when looking for evidence of labor-market discrimination?
a. because the salaries paid to professional athletes exhibit the superstar phenomenon, which is highly correlated with discrimination b. because all four United States professional sports leagues (football, basketball, hockey, and baseball) require discrimination studies every five years c. because nonwhites comprise a majority of starters for many professional sports teams d. because the wide availability of performance statistics allows economists to control for individual player productivity in ways that are difficult to do for other types of firms
The idea that consumers rule the market
a. capitalism b. consumer sovereignty c. private property rights d. "the customer is never right"
The essential cause of the tragedy of the commons is the fact that:
A. when a resource has no price, it leads to a positional externality. B. governments may not tax activities that generate negative externalities. C. it can be difficult to solve the free-rider problem. D. one person's use of a commonly held resource imposes an external cost on others.