the ways in which the rent seeking can result in fall in the production of goods and services and the role played by the underground economy in reducing the fall in productive activities.
Concept Introduction:
Rent seeking is a type of resource or capital earning system by a company, organization or individual to obtain economic gain without reciprocating any benefits to society and creating wealth. This involves an earning income through profit, wage and rent. Rent is considered the least risky and easiest type of earning income because it requires resource ownership and the ability to use these resources to generate income by lending their use to others. It can be problematic when the company increases the no. of shares without increasing the total capital.
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Chapter 16 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
- Special interests do not oppose regulations in all cases. The Marketplace Fairness Act of 2013 would require online merchants to collect sales taxes from their customers in other states. Why might a large online retailer like Amazon.com support such a measure?arrow_forwardPQ 19 The "debt service ratio" for a country is the ration of the country's ______ to _____ a. total external debt / fross domestic product b. annual interest payment on external debt / exports of services c. annual interest payments on external debt and scdeuled annual external debt repayments / export earnings d. annual interest payment on external debt /exports of earningsarrow_forward7. Fill in the blankarrow_forward
- Ch. 13 Please help solving all parts of this question. Thank you!arrow_forward11- Earnings such as wages, interests and dividends by residents who are living in other countries are called _____________. a. Domestic Output b. Factor income from abroad c. Price level d. Domestic productarrow_forward8. Includes all income earned: wages, profits, rent, and profit income within an Economy. Question 8 options: Trade Balance Net Income Gross Domestic Product National Incomearrow_forward
- 28. Which ones correctarrow_forward17- There is freedom of choice for the consumers in United States of America. Identify which type of economic system this country has. a. Command economy b. None of these c. Capitalist economy d. Mixed economyarrow_forward1---consider a consumer who earns income each month. person has to spend each month on essential goods, such as food and personal. person has no access to reliable savings, so person must spend her entire income each month. The consumer is interested in taking a loan to finance a large purchase. The cost of capital for banks is fixed at each month and the monthly interest rate charged to borrowers is . Both and are equal to one plus the interest rate as we are used to seeing it – e.g., if a loan charges 5% monthly interest, then = 1.05 2---What is the largest nonessential purchase that the consumer can make each month without borrowing? Express it as a function of y c 3--Under the zero profit condition for lenders (i.e. banks), what will the interest rate charged to borrowers be? Assume there is no risk of default and no fixed costs and express it as a function of(capital k), y,c 4--What is the borrower’s monthly disposable income (exclusive of essential purchases) with a loan, under…arrow_forward
- 14 Can you help me solve this question? Thanks.arrow_forward5- Which of these is true about GDP and equality? a. Equality is guaranteed in countries with high GDP b. Lower GDP means more inequality c. There is no clear relationship between GDP and equality d. Higher GDP means more inequalityarrow_forwardQUESTION 1Coffee is now the second most traded commodity in the world after crude oil. Not only has demand for various coffee products risen sharply in Western countries in recent years, increasingly there is also greater taste for coffee drinks in developing countries such as China and India. In addition, by-products of coffee beans have become popular such as coffee leaves which can be used to brew a tea with known health benefits. However, as a natural produce, coffee plants are subject to weather conditions. Recently major producers such as Brazil have been plagued by droughts. Using the demand-supply model, explain the likely effects of these phenomena in the coffee bean market. How can a market analyst use this information to her advantage? QUESTION 2The internet and online social media in particular are giving people unprecedented ability to express their views and share information with others. On the other hand the truth of what people say online and the sheer volume of…arrow_forward
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax