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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A market structure in which identical goods are produced by several different firms and sold at the market determined price is referred to as:
A) an oligopoly. B) a monopoly. C) perfect competition. D) monopolistic competition.
Comparing a discount bond and a coupon bond with the same maturity
A) the coupon bond has the greater effective maturity. B) the discount bond has the greater effective maturity. C) the effective maturity cannot be calculated for a coupon bond. D) the effective maturity cannot be calculated for a discount bond.