Which of the Following Statements About Rent Seeking Is False

question 90

Multiple Choice

Which of the following statements about rent seeking is false?

• A)Rent seeking often involves governments because governments transfer huge amounts of funds that economic agents must compete for.
• B)A person is engaging in rent-seeking behavior when he uses the political process to acquire ownership of a resource that belongs to the public.
• C)Because rent seeking redistributes society's resources, anyone engaging in such behavior is violating the law.
• D)If a firm can benefit from government intervention in the economy, it is more likely to spend resources attempting to secure this intervention than toward innovating its product to gain a competitive edge in the market.

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Definitions:

Group-oriented Cultures

Group-oriented cultures prioritize the interests and values of the group over those of the individual, often emphasizing cooperation, community, and collective decision-making.

Series of Discussions

Multiple conversations or meetings held to explore or resolve a particular issue or set of issues.

Decision Making

Decision Making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Immediate Context Factor

Elements or conditions present in the environment at the moment that can influence the outcome or process of an activity, such as negotiations.