In other words, tell how to calculate the net rent seeking loss. Identify the five components of the net rent seeking loss described in the text. In other words, tell how to calculate the rent seeking loss. In other words, tell who might benefit from trying to influence legislators to pass or not to pass a tariff bill. In the example of the rice tariff, assume that all of the potential rent seekers form pressure groups in order to influence legislation.
Opponents also join pressure groups in order to prevent the rice tariff from being passed.
However, a small tariff bill is passed anyway. Identify the losses due to rent seeking and classify them according to whether they are efficiency losses or investment losses. Using an example that is different from the text, show how members of a city council may become rent seekers. In the more complex examples of taxi drivers as rent seekers, the restrictions on taxi licensing caused taxi prices to be higher than otherwise. Yet the taxi drivers ultimately earned no monopoly rent.