The more inelastic the demand for agricultural output, the stronger the incentive for farmers to engage in rent-seeking activities.
Answer the following statement true (T) or false (F)
True
The more inelastic the demand, the greater the loss of revenue resulting from an increase in supply. The incentive for rent seeking is to avoid this loss of revenue.
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Optimal decisions are made at the point where marginal benefit is maximized
Indicate whether the statement is true or false
What is the distinction between private cost and social cost?
What will be an ideal response?
Briefly explain why a jacket is a private good.
What will be an ideal response?
In a nation's balance of payments, the current account includes
A. the purchases of foreign assets. B. the changes in the official reserve transaction account. C. the balance of the trade account, the balance of the services account, and net unilateral transfers. D. all of these.