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

Question

Quizplus · Accepted Answer

Rent seeking with respect to restricting international trade refers to the attempt to capture the gains from trade by imposing a tariff. This essentially means that a government may impose a tariff or other restrictions on imported goods in an attempt to capture some of the economic surplus that would have gone to foreign producers and consumers. This can be seen as a form of rent seeking because the government is essentially trying to capture some of the economic rents associated with international trade for itself.

What Is Rent Seeking with Respect to Restricting International Trade