What Is Rent Seeking with Respect to Restricting International Trade

question 183

Multiple Choice

What is rent seeking with respect to restricting international trade?

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

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Definitions:

Agent

An individual authorized to act on behalf of another person or entity, often in a business setting.

Liability

A legal obligation or debt that an entity is bound to fulfill towards another party.

Employer's Liability

Legal responsibility of an employer for injuries, illnesses, or damages suffered by employees as a result of their employment.

Respondeat Superior

A legal principle stating that an employer or principal is legally liable for the wrongful actions of an employee or agent, provided these actions happened in the course of their employment or agency.