Inefficient Output and Price, Few Choices, and Rent-Seeking Are All

question 71

Multiple Choice

Inefficient output and price, few choices, and rent-seeking are all problems associated with:

• A) externalities.
• B) competitive markets.
• C) monopolies.
• D) scarcity.
• E) trade.

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Definitions:

Tariff

A tax imposed on imported goods and services, which can affect trade between countries by increasing the cost of imported goods.

Infant Industries

Newly established industries that are often protected by the government from international competition until they become competitive.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity can produce it.

Opportunity Costs

The loss of potential gain from other alternatives when one particular option is chosen over others.