Which of the Following Is an Example of Rent Seeking

question 176

Multiple Choice

Which of the following is an example of rent seeking behavior?

• A)Apple earned large profits from the development and sale of the iPhone.
• B)Amazon introduced the Kindle to compete with Sony's Digital Reader. Amazon was motivated by the desire to earn profits from the Kindle but also increased the choice of digital music players available to consumers.
• C)U.S. sugar firms convinced Congress to impose a quota on imports of sugar.
• D)Recent increases in cigarette taxes faced little opposition from voters, many of whom were rationally ignorant with respect to the tax.

Recognize the challenges faced by freed slaves post-Civil War.

Know the fate of Lincoln's assassin and the conspiracy theories surrounding Lincoln's assassination.

Understand the political and social motivations behind the relocation of Confederates after the war.

Grasp how northern Democrats viewed the treatment of ex-Confederate states post-war.

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Definitions:

Interest Rate Risk

The risk of changes in interest rates that can adversely affect the value of an investment.

Term Structure

The relationship between interest rates or bond yields and different terms or maturities, depicted in a curve.

Maturity Date

The specific date on which the principal or final payment of a debt instrument is due to be paid to the investors or lenders.

Nominal Rate

The interest rate stated on a bond or loan agreement without adjustment for inflation.