Rent Seeking Is More Likely to Occur in a Family

question 39

True/False

Rent seeking is more likely to occur in a family when the parents make their inheritance plans clear by telling the children ahead of time that their estate will be divided equally among the children (and that under no circumstances will the parents change their minds)than when there is more uncertainty with regards to the parents' inheritance plans.

---

Definitions:

Capital

Financial assets or the value of assets owned by a business, used in producing goods or services or invested to generate income.