Activity aimed at creating artificial barriers to entry into a particular market
A) has no social cost.
B) improves the economy's efficiency.
C) improves competition.
D) is rent seeking.

Question

Quizplus · Accepted Answer

Rent seeking is the activity of trying to increase one's share of existing wealth without creating new wealth. Creating artificial barriers to entry into a market is a form of rent seeking because it aims to benefit existing players at the expense of potential new entrants, without contributing to economic growth or efficiency.

Activity Aimed at Creating Artificial Barriers to Entry into a Particular