The Figure Given Below Shows the Demand [D and D']

question 26

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Which of the following actions can be categorized as rent seeking?

• A)Increase in the income tax rates by the government
• B)Lobbying efforts of individuals or groups to gain favors from the government
• C)Profit maximizing firms charging a price greater than their marginal costs
• D)Export of goods from developing to developed countries
• E)Government intervention in the real estate market

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Definitions:

Anticommunism

Opposition to communism, often characterized by political and ideological resistance to countries or movements associated with communist ideologies.

Government Regulatory Efforts

Actions taken by government bodies to control or direct economic, social, and environmental activities according to specific standards or laws.

McCarran-Walter Act

Immigration legislation passed in 1952 that allowed the government to deport immigrants who had been identified as communists, regardless of whether or not they were citizens.