Rent seeking: A. cannot take the form of lobbying for government imposed import restrictions . B . increases the social cost of monopoly . C. frees scarce resources that could otherwise have been employed in the production of goods and services . D. None of the above answers are correct .

The price in a competitive market, without any inefficiencies, maximizes the gains from trade, because ____. A. No other single price can provide as much surplus to producers.B. No other single price can provide as much surplus to consumers.C. No other single price can allow as many quantities to be exchanged.D. Only A & B.

Lesson 10 Question 8

Scenario: The government implements a tax on imported luxury cars to protect the domestic automobile industry. Consequently, the price of imported luxury cars increases, and consumers shift their preferences towards domestic car manufacturers. Which of the following concepts best describes the government's intervention in this scenario? A. Deadweight loss B. Tax incidence C. Price elasticity of demand D. Protectionism