When a deadweight loss occurs in a market, we can be certain that ...

[jrubin]

When a deadweight loss occurs in a market, we can be certain that
 
  A) taxes have been imposed in a market.
  B) the market is a monopoly.
  C) there underproduction in the market.
  D) the entire society experiences a loss.

Question 2

What is rent seeking? How does it apply to restricting imports?
 
  What will be an ideal response?

[katara]

Answer to Question 1

D

Answer to Question 2

Rent seeking is lobbying and other political activity that seeks to capture the gains from trade. When imports are restricted, some people gain from the restrictions. Rent seekers, such as domestic producers of import-competing goods or services, lobby the government to impose import restrictions because restrictions allow the rent seekers to gain revenue and/or profit.

[jrubin]

Thanks for the timely response, appreciate it

[tranoy]

Excellent