Which of the following is an example of rent seeking behavior?
A) Recent increases in cigarette taxes faced little opposition from voters, many of whom were rationally ignorant with respect to the tax.
B) U.S. sugar firms convinced Congress to impose a quota on imports of sugar.
C) Amazon introduced the Kindle to compete with Sony's Digital Reader. Amazon was motivated by the desire to earn profits from the Kindle but also increased the choice of digital music players available to consumers.
D) Apple earned large profits from the development and sale of the iPhone.
B
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In a perfectly competitive labor market, at the equilibrium wage rate:
A) cyclical unemployment is negative. B) frictional unemployment is positive. C) frictional unemployment is zero. D) cyclical unemployment is positive.
The United States imposes a tariff on foreign limes. How does the tariff affect the U.S. price of a lime and the production of limes in the United States?
What will be an ideal response?
Scarcity can best be defined as a situation in which:
A. there are no buyers willing to purchase what sellers have produced. B. there are not enough goods to satisfy all of the buyers' demand. C. the resources we use to produce goods and services are limited. D. there is more than enough money to satisfy consumers' wants.
If a retail food chain merged with a meat packing company, this would be an example of a
A. diagonal merger. B. vertical merger. C. conglomerate merger. D. horizontal merger.