(a) Explain rent seeking and list three sources of rent seeking in the domestic and international markets Consider the situation presented in Module 7 Practice Problem 3 on p 471 (Baye, 10e) Graphically illustrate and explain your answers In its efforts against asymmetric information in the credit market, the Truth in Lending Act (1969) was amended by the US Congress by passing the Truth in Lending Simplification Act (TLSA) in 1980 The US Federal Reserve, the US Federal agency in charge of enforcing TLSA, passed Regulation Z in 1980 and it amended Regulation Z in 1982 to provide guidelines for the enforcement of TLSA Graphically illustrate and carefully discuss the impact of the Truth in Lending Act on the US credit market equilibrium interest rate and consumer loan level 3 China's entry into the World Trade Organization (WTO) in 2001 created more competi tion between local and foreign firms, and also provided China greater access to the mar ket for exports This was particularly true in the market for rubber since, at the time, China was the world's second largest consumer of rubber (China is now the world's largest consumer of rubber) Shortly after joining the WTO, China eliminated its import quota on rubber What impact do you think the import quota reduction likely had on the price of rubber and the quantity of rubber exchanged in China What implications do you think the elimination of the quota on rubber had on China's social welfare (LOI)

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(a) Explain rent-seeking and list three sources of rent-seeking in the domestic and international markets. Consider the situation presented in Module 7 Practice Problem #3

(a) Explain rent-seeking and list three sources of rent-seeking in the domestic and international markets.

Consider the situation presented in Module 7 Practice Problem #3 on p. 471 (Baye, 10e). Graphically illustrate and explain your answers.

In its efforts against asymmetric information in the credit market, the Truth in Lending Act (1969) was amended by the US Congress by passing the Truth in Lending Simplification Act (TLSA) in 1980. The US Federal Reserve, the US Federal agency in charge of enforcing TLSA, passed Regulation Z in 1980 and it amended Regulation Z in 1982 to provide guidelines for the enforcement of TLSA. Graphically illustrate and carefully discuss the impact of the Truth in Lending Act on the US credit market equilibrium interest rate and consumer loan level.

3. China's entry into the World Trade Organization (WTO) in 2001 created more competi- tion between local and foreign firms, and also provided China greater access to the mar- ket for exports. This was particularly true in the market for rubber since, at the time, China was the world's second largest consumer of rubber (China is now the world's largest consumer of rubber). Shortly after joining the WTO, China eliminated its import quota on rubber. What impact do you think the import quota reduction likely had on the price of rubber and the quantity of rubber exchanged in China? What implications do you think the elimination of the quota on rubber had on China's social welfare? (LOI)