Rent seeking occurs when
A) resources are used to deregulate a market through the political process.
B) resources are used to maximize profits.
C) resources are used to secure monopoly rights through the political process.
D) two firms try to enter the same market.
E) landlords attempt to raise the rent on tenants.

Question

Quizplus · Accepted Answer

Rent seeking specifically refers to the use of resources to secure monopoly rights or other advantages through the political process. It is a form of economic rent-seeking behavior that involves lobbying, campaign contributions, or other efforts to influence politicians or policymakers in order to gain an unfair advantage in the market. Options A, B, D, and E do not accurately describe rent seeking behavior.

Rent Seeking Occurs When