What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted.
B) An attempt to capture the gains from trade by imposing a tariff.
C) The attempt by importers to avoid paying a tariff.
D) The government's efforts to capture tariff rents.
E) The government avoids paying rent on buildings when importers pay the tariff.

Question

Quizplus · Accepted Answer

Rent seeking with respect to restricting international trade refers to the attempt by a government to capture the gains from trade by imposing a tariff, which enables domestic producers to charge higher prices and obtain greater profits. This is done at the expense of consumers, who pay higher prices. Therefore, the government is essentially trying to capture the rent or surplus that arises from the tariff, which is known as rent seeking.

What Is Rent Seeking with Respect to Restricting International Trade