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ldentify which of the following statements describe rent seeking and which do no

ID: 1115999 • Letter: L

Question

ldentify which of the following statements describe rent seeking and which do not. Rent seeking Not rent seeking Retail stores rely heavily on imported items in order to keep prices low for consumers. Industry groups lobby law-makers to pass legislation favorable to their members. U.S. textbook companies try to convince the government to outlaw An American waterfall tour company in Niagara Falls requests that the New York government deny business permits to Canadian competitors the purchase of international editions. U. S. dairy farmers decide not to export dairy products.

Explanation / Answer

Retail stores..... =not rent seeking as it benefits customers

Industry groups lobby lawmakers....... =rent seeking as it benefits them only

US textbooks...... =rent seeking. Will benefit them not society.

An American waterfall........=rent seeking

US dairy producers.... =not rent seeking g