Rent seeking
A) is desired by consumers.
B) is not a type of competition.
C) is a type of competition that leads to a market price and output.
D) is a type of competition that leads to an undesirable outcome.
E) occurs when resources are used to deregulate a market through the political process.

Question

Quizplus · Accepted Answer

Rent seeking is a type of competition that leads to an undesirable outcome. It refers to the use of resources, such as lobbying or campaign contributions, to gain an advantage in the market without providing any additional value to consumers. Rent seeking results in higher prices, reduced output, and decreased economic efficiency.

Rent Seeking