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."