During the 1992 presidential campaign, H. Ross Perot made much of the various "special interests" which lobby in Washington, D.C. How might an economist view this? Which specific market breakdown may occur if there is lobbying? Relate your answer to the study of monopoly and oligopoly
Lobbying may be a manifestation of rent seeking, that is, seeking a higher rate of return by restricting entry or otherwise limiting the free movement of resources in pursuit of profits. This can be an example of a government restriction serving as an entry barrier, leading to continued long-run economic profit for the resulting monopolistic or oligopolistic market structure.
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The U.S. labor movement started with
A) aerospace workers unions. B) industrial unions. C) craft unions. D) depression unions.
The vertical intercept of the consumption function equals ________ and the slope equals ________.
A. autonomous consumption; the MPC. B. the planned component of consumption; the unplanned component of consumption. C. the unplanned component of consumption; the planned component of consumption. D. the MPC; autonomous consumption.