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:

Property Taxes

Taxes assessed on real estate properties, based on the property's value, and paid to local governments.

Factory Building

A physical structure used for the manufacturing or assembly of goods.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to production activities.

Committed Fixed Cost

Long-term fixed costs that cannot be easily altered in the short term, such as leases and depreciation on equipment.