Rent seeking refers to unproductive activity in the pursuit of profit.

A country with a fixed exchange rate faces:

a. no monetary policy constraints in the long run. b. no monetary policy constraints in the short run. c. no monetary policy constraints in the long run and the short run. d. monetary policy constraints in the long run and the short run

In the case of negative externalities, _____

a. the market equilibrium output is greater than the socially optimal output b. the market equilibrium output is lesser than the socially optimal output c. the social cost curve lies below the private cost curve d. the market is allocatively efficient at market equilibrium