What is "rent seeking?" How does it apply to restricting imports?
What will be an ideal response?
Rent seeking is lobbying and other political activity that seeks to capture the gains from trade. When imports are restricted, some people gain from the restrictions. Rent seekers, such as domestic producers of import-competing goods or services, lobby the government to impose import restrictions because restrictions allow the rent seekers to gain revenue and/or profit.
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The introduction of new technologies to production is ________ source of productivity improvement.
A. the only B. the least important C. no longer a D. the most important
Recall the Application about the attempt to form a salt cartel in the 19th century to answer the following question(s).Recall the Application. One of the primary goals of the salt producers who tried to form a cartel was to:
A. establish a uniform price for salt. B. boost the demand for salt. C. establish an export market for salt. D. increase competition in the market for salt.