That firms bribe officials to obtain the quota licence for import is an example of Group of answer choices monopolistic competition factor price reversal voluntary export restraint rent seeking
Question
That firms bribe officials to obtain the quota licence for import is an example of
Group of answer choices
monopolistic competition
factor price reversal
voluntary export restraint
rent seeking
Solution 1
The correct answer is "rent seeking".
Rent seeking occurs when an entity seeks to increase one's share of existing wealth without creating new wealth. In this case, firms are bribing officials to obtain the quota license for import. They are not creating new wealth, but rather trying to gain a larger share of the existing wealth. This behavior is an example of rent seeking.
Solution 2
The correct answer is "rent seeking".
Rent seeking occurs when an entity seeks to increase one's share of existing wealth without creating new wealth. In this case, firms are bribing officials to obtain the quota license for import. They are not creating new wealth, but rather trying to gain a larger share of the existing wealth. This behavior is an example of rent seeking.
Similar Questions
The extra profit that producers make when supply is artificially limited by an import quota is referred to as:Question 4Select one:a.Specific tariffb.Subsidyc.Quota rentd.Tariff rate quota
________ are quotas that lead to a complete abolishment of trade. voluntary export restraints embargoes nontariff barriers orderly marketing agreements
These must be paid by firms as a punishment for engaging in unfair price competitionGroup of answer choicesExport tariffsCountervailing dutiesAntidumping dutiesImport tariffs
A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. tariff duty trading bloc trade agreement quota
Direct restrictions on the quantity of some good that may be imported into a country are known as:Question 5Select one:a.None of the aboveb.Ad valorem tariffsc.Specific tariffsd.Tariff rate quotas
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.