1Connor uses means that are legal to arrange his finances so as to pay the least tax possible He is engaging in:?
?tax evasion
?logrolling
?tax avoidance
?rent seeking
?pork-barrel spending
2A firm wishing to acquire a monopoly position would be willing to spend up to its anticipated monopoly profit in rent-seeking activities
True
False
3Rational ignorance helps explain why:?
?legislators often trade votes on key issues to produce positive sum games between them
?legislators usually disregard the desires of those constituencies that cannot influence their chances for reelection
?legislation generates large benefits for a few people but imposes costs on many people
?individuals or firms attempt to obtain favorable treatment from government officials
?voters may choose to remain ignorant of issues when there are large costs associated with becoming informed
4A large US steel firm wants to restrict imports of Japanese steel, but Ford Motor Company wants fewer restrictions on steel imports so that its cost of production remains constant This can best be described as a(n):?
?zero-sum game
?example of a competing interest
?example of a special interest
?situation with widespread costs and concentrated benefits
?free-rider problem