Rent Seeking

question 20

Multiple Choice

Rent seeking

• A) frees scarce resources that could otherwise have been employed in the production of goods and services.
• B) cannot take the form of lobbying for government- imposed import restrictions.
• C) increases the social cost of monopoly.
• D) None of the above answers is correct.

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Definitions:

Reasonable Inspection

A thorough yet fair examination or check, often used in contracts or legal contexts to ensure compliance with standards.

Warranty Action

Legal action taken to enforce the terms of a warranty, which is a guarantee provided by a seller to a buyer regarding the condition of a product.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to unintended harm or damage.

Proximately Caused

Refers to an event sufficiently related to a legally recognizable injury to be held as the cause of that injury.