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:

Psychotic Symptoms

Experiences that involve a loss of contact with reality, such as hallucinations or delusions, often found in disorders like schizophrenia.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, a clinical method for treating psychopathology, developed by Sigmund Freud.

Borderline Personality Disorder

A mental disorder characterized by unstable moods, behaviors, and relationships.

Instability

A state of being unpredictable and prone to change, often leading to chaos or disorder.