Which of the Following Statements Refers to Rent Seeking

question 71

Multiple Choice

Which of the following statements refers to rent seeking?

• A)"Laws passed by the federal government often provide benefits for a small number of individuals. These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws."
• B)"The federal government should spend more money on programs that help low income citizens and less money on national defense."
• C)"The role of the federal government in the U.S. economy grew significantly after the Great Depression. Government spending and taxes are a much greater proportion of total income today than they were in 1929."
• D)"There is an opportunity cost whenever the federal government spends tax revenue. For example, an additional $1 billion spent on national defense means there will be less revenue for highway construction and maintenance or some other program."

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Definitions:

Socially Responsive

Characteristics of an individual or entity that demonstrates awareness, sensitivity, and adaptability to social contexts and needs.

Observational Learning

Gaining understanding and abilities through the observation and emulation of other individuals.

Observational Learning

The process of acquiring information or behavior patterns by observing and imitating others.

Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.