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Which of the Following Is the Best Example of "Rent

Question 78

Multiple Choice

Which of the following is the best example of "rent seeking"?


A) The government imposes a pollution tax on firms to eliminate a negative externality.
B) A municipal government chooses the lowest bid for construction of a new water system.
C) Owners of aerospace firms receive government subsidies to make the firms more competitive in world markets.
D) Costly renovations are made to the roof of the Parliament Buildings in Ottawa.
E) Taxpayer funds are used for snow removal on public streets.

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