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:

Insourcing

The practice of assigning tasks or projects to personnel within the organization instead of outsourcing to external entities.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Subcontracts

Secondary contracts that are assigned by a primary contractor to third parties to perform part of the work originally contracted.

Prime Contractor

The main contractor who has a direct contract with the client and takes overall responsibility for the execution of a project, subcontracting parts of the work to others as necessary.