Describe how rent-seeking behavior works
Please provide the best answer for the statement.
Rent-seeking behavior occurs when government action results in a transfer of wealth at society’s or someone else’s expense. In this case, the term “rent” means any profit or income to a business, a resource owner, or other organization that is above that which would be paid to the individual, corporation or group under competitive market conditions. The government is able to distribute the rent through laws, rules, hiring practices, or purchases. Some examples of rent-seeking include occupational licensing beyond that needed to protect consumers, tariffs on imported products designed to protect businesses from foreign competition, and tax breaks or tax subsidies for particular businesses.
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A monopolistic industry will have a Herfindahl index value of:
a. 1. b. 100. c. 500. d. 1000. e. 10.
Which of the following groups had the highest median income in the U.S. in 2008?
A. Hispanic B. White (non-Hispanic) C. Asian D. Black
Which of the following is an example of unconventional monetary policy?
a. the Federal Reserve selling T-bills b. the Federal Reserve decreasing the discount rate c. the Federal Reserve purchasing mortgage-backed securities d. none of the above
Discuss the components of GDP using the expenditure approach.
What will be an ideal response?