Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers
A) increases consumer surplus.
B) increases total welfare.
C) increases the deadweight loss.
D) None of the above.

Question

Quizplus · Accepted Answer

Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers creates a trade barrier, leading to an increase in prices, decreased consumption, reduced trade, and increased deadweight loss. Therefore, it decreases total welfare, and there is no increase in consumer surplus.

Rent Seeking in the Form of Lobbying for an Increase