The purpose of a political action committee is

The purpose of a political action committee is
 a. to help elect officials sympathetic to its members' special interests
  b. to help elect officials who will enact fair legislation
  c. to raise money for public interest groups
  d. to exchange trade secrets
  e. to allow special-interest groups to be elected

QUESTION 2

Oligopolists are more sensitive to the pricing and output policies of their rivals when
 a. all firms produce identical products
  b. their products are highly differentiated
  c. there is freedom of entry and exit
  d. there are barriers to entry
  e. there are many firms in the industry

QUESTION 3

To the extent that special-interest groups engage in rent seeking, they
 a. are guilty of tax evasion
  b. tend to make the economy more efficient
  c. support legislation transferring wealth to themselves only if the measure increases the economy's overall efficiency
  d. shift resources from endeavors that create income to activities that simply transfer income
  e. tend to increase the economy's total output of goods and services while redistributing income

QUESTION 4

Which of the following is unique to oligopoly among all the market structures?
 a. product differentiation
  b. profit maximization
  c. mutual interdependence
  d. advertising
  e. long-run economic profits

QUESTION 5

Attempts by special-interest groups to gain favorable treatment from government are called
 a. utility maximizing
  b. profit seeking
  c. rent seeking
  d. profit maximizing
  e. rent minimizing

QUESTION 6

An intersection known as Four Corners lies 300 miles from the nearest town. At this intersection are three independently owned gas stations and one small pharmacy. Which of the following is true?
 a. The firms are all perfectly competitive because of their size.
  b. It would be easier for all four firms to form a cartel than for only the gas stations to do so.
  c. The gas stations are monopolistically competitive because there are so few of them that they are almost monopolists.
  d. The gas stations are perfectly competitive; the pharmacy is not.
  e. The gas stations are oligopolists; the pharmacy is a monopolist.

QUESTION 7

Rent-seeking behavior imposes no costs on society because it is elected officials who actually make public sector decisions.
 a. True
  b. False