Rent - Seeking

question 46

Multiple Choice

Rent - seeking:

• A)involves resources paid to politicians to enhance one group at the expense of another.
• B)results in less monopoly power.
• C)results in externalities.
• D)none of the statements associated with this question are correct.

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Definitions:

Government Spending

This refers to the total expenditure by government agencies on goods, services, and public works.

Demand for Goods

The desire, willingness, and ability of consumers to purchase goods at a given price over a specific time period.

Unemployment Insurance

A government program that partially protects workers’ incomes when they become unemployed.

Multiplier

The factor by which an initial change in spending will alter total economic output, usually in the context of fiscal or monetary policy.