Firms that expend resources for lobbying that could have been used for productive services are engaging in rent-seeking behavior.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The availability of vast stocks of natural resources is an example of a(n):
A) implicit cause of prosperity. B) explicit cause of prosperity. C) fundamental cause of prosperity. D) proximate cause of prosperity.
Most economists agree with which of the following?
A) Passive policymaking is likely to exert sizable long-run effects on real GDP. B) Active policymaking is likely to exert sizable long-run effects on real GDP. C) Active policymaking is unlikely to exert sizable long-run effects on real GDP. D) none of the above
The fact that individual productive resources are NOT equally useful in all activities
A) implies that a production possibilities frontier will be bowed outward. B) implies that gain from specialization and trade is unlikely. C) follows from the law of demand. D) implies a linear production possibilities frontier.
Refer to Figure 19-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. At the pegged exchange rate,
A) there is a surplus of pounds equal to 600 million. B) there is a shortage of pounds equal to 200 million. C) there is a surplus of pounds equal to 400 million. D) there is a shortage of pounds equal to 400 million. E) there is a shortage of pounds equal to 600 million.