Rent seeking:
A) involves resources paid to politicians to enhance one group at the expense of another.
B) results in less monopoly power.
C) results in externalities.
D) None of the statements are correct.

Question

Quizplus · Accepted Answer

Rent seeking is the use of resources to gain an advantage in a market or industry, often by lobbying the government for special privileges or protection. This often involves paying politicians to enact policies that benefit one group at the expense of others. It can result in less competition and increased monopoly power, which is why it is often considered harmful to the economy.

Rent Seeking