
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772 Exercise 21
A few hundred U.S. sugar makers lobby the U.S. government each year to make sure that the government taxes imported sugar at a high rate. They do so because the policy drives up the domestic price of sugar and increases their profits. It is estimated that the policy benefits U.S. sugar producers by about $1 billion per year while costing U.S. consumers upwards of $2 billion per year. Which of the following concepts apply to the U.S. sugar tax?
Select one or more of the choices shown.
a. Political corruption.
b. Rent-seeking behavior.
c. The collective-action problem.
d. The special-interest effect.
Select one or more of the choices shown.
a. Political corruption.
b. Rent-seeking behavior.
c. The collective-action problem.
d. The special-interest effect.
Explanation
This is an example of rent-seeking behav...
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
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