Which of the following would be considered rent-seeking activity?
a. A software firm using lawsuits to drive competitors out of business.
b. A technology firm investing in extremely expensive capital equipment.
c. A large firm trying to charge lower prices than its competitors.
d. An auto manufacturer using features and styling to differentiate its models from its competitors'.
A
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Suppose that the price of an ounce of gold is 120 pesos in Mexico and 2,400 yen in Japan. Then the Japanese yen is worth two hundred times the value of a Mexican peso
a. True b. False Indicate whether the statement is true or false
Which of the following was not a result of the luxury tax imposed by Congress in 1990?
a. The larger part of the tax burden fell on sellers. b. A larger part of the tax burden fell on the middle class than on the rich. c. Even the wealthy demanded fewer luxury goods. d. The tax was never repealed or even modified.