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The Owner of a Garage Makes Large Contributions to a Politician

Question 173

Multiple Choice

The owner of a garage makes large contributions to a politician who is seeking the office of state governor.If his candidate wins, he will get the contract, which now resides with a competitor, to repair State Police vehicles.This is an example of


A) moral hazard.
B) externality.
C) rent seeking.
D) investment.

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