What Is Rent Seeking with Respect to Restricting International Trade

question 12

Multiple Choice

What is rent seeking with respect to restricting international trade?

• A) The rent on factory buildings increases if trade is restricted.
• B) An attempt to capture the gains from trade by imposing a tariff.
• C) The attempt by importers to avoid paying a tariff.
• D) The government's efforts to capture tariff rents.
• E) The government avoids paying rent on buildings when importers pay the tariff.

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Definitions:

Product Value

The importance or usefulness of a product to a consumer, often reflected in their willingness to pay for it.

Producing More X

Increasing the output or manufacture of a specific product or commodity, referred to as "X".

Society Gains

Refers to the overall benefits or improvements in welfare that accrue to a community or society from economic activities or policies.

Current Output

The total amount of goods or services produced by a firm or economy at a given time.