Which of the following activities is most likely to be considered rent seeking?
A)buying an apartment building
B)hiring a lobbyist
C)voting for a politician who supports government spending
D)buying common stock

Question

Which of the following activities is most likely to be considered rent seeking?
A)buying an apartment building 
B)hiring a lobbyist 
C)voting for a politician who supports government spending 
D)buying common stock

Quizplus · Accepted Answer

Rent seeking refers to the use of resources to obtain economic rent (i.e., income or wealth earned through political or legal means rather than through productive activity). Hiring a lobbyist is a classic example of rent seeking as it involves using resources (i.e., money, contacts, information) to influence government policies or regulations in a way that benefits a particular group, often at the expense of others. The other activities listed are not necessarily examples of rent seeking, as they do not involve using resources to extract economic rent from others. Buying an apartment building or common stock, for example, involves investing in a productive asset or business that generates income through market-based transactions. Voting for a politician who supports government spending may reflect a particular preference or ideology, but it does not necessarily involve rent seeking unless the objective is to obtain government contracts, subsidies, or other benefits that are not available through market-based competition.

Which of the Following Activities Is Most Likely to Be