To the Extent That Special-Interest Groups Engage in Rent Seeking

question 61

Multiple Choice

To the extent that special-interest groups engage in rent seeking, they

• A)are guilty of tax evasion
• B)tend to make the economy more efficient
• C)support legislation transferring wealth to themselves only if the measure increases the economy's overall efficiency
• D)shift resources from endeavors that create income to activities that simply transfer income
• E)tend to increase the economy's total output of goods and services while redistributing income

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Definitions:

Proximity To Raw Materials

The strategic advantage gained by being located near the supply of raw materials, reducing transportation costs and time.

Physical Characteristics

The tangible attributes or features of an object, person, or location that can be observed with the senses.

Labor Supply

The total hours that workers or employees are willing to work at a given wage rate, or the availability of workers available to work in an economy.

Flexible Manufacturing

A system that allows for easy adaptation to changes in product design and demand by using versatile equipment and computer systems.