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.

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Definitions:

Order of Priority

The sequence or ranking used to determine the importance or urgency of different items, claims, or needs.

Claims for Debts

Demands for payment of money owed, typically arising from contracts, agreements, or credit transactions.

Domestic Support

Financial or material assistance provided within a household, often involving alimony or child support following a divorce.

Motor Vehicles

Vehicles including cars, motorcycles, trucks, buses, and others, powered by engines for transportation on public roads.