Which of the following actions can be categorized as rent seeking?
a. Increase in the income tax rates by the government
b. Lobbying efforts of individuals or groups to gain favors from the government
c. Profit maximizing firms charging a price greater than their marginal costs
d. Export of goods from developing to developed countries
e. Government intervention in the real estate market
b
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The theory of rational expectations states that
a. expected inflation will be no different from actual inflation, on average. b. expectations are based on all possible information. c. individuals always act optimally. d. expected inflation will be lower than actual inflation.
Adjusted gross income is
A. any profit you have from asset sales. B. total income from all sources. C. income after deductions and exemptions are taken. D. the amount of income a taxpayer has after taxes are paid.
The financial market shock which occurred during the recession of 2007-2009 increased the default-risk premium, causing the
A) IS curve to shift to the right. B) IS curve to shift to the left. C) MP curve to shift up. D) MP curve to shift down.
What usually happens after an adverse supply shock?
What will be an ideal response?