If a Quota License Is Awarded to a Domestic Firm

question 152

Multiple Choice

If a quota license is awarded to a domestic firm without an auction, it may generate bribes or lobbying spending to earn this revenue. Economists call this a(n) ____ activity.

• A) efficient
• B) unnecessary
• C) wasteful rent-seeking
• D) profit-maximizing

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Definitions:

Communication Network

Set of rules governing the possibility or ease of communication between different roles in a group.

Task Allocation

The assignment of tasks or duties to different people or groups in an organization or project, often based on skills, availability, or workload balancing.

Division of Labour

The assignment of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Social Roles

The parts individuals play as members of a social group, which dictate their behavior, responsibilities, and expectations.