Which of the Following Statements About Rent Seeking Is False

question 93

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 behaviour 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 behaviour 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:

Long Term

Referring to an extended period of time, often focusing on strategic planning, investments, or goals that will take several years to achieve.

Customer Interest

The preferences, needs, and desires of consumers that influence their purchasing decisions.

Marketing Channels

The pathways through which goods and services flow from producer to the end consumer.

Power Shift

A significant change in the balance of power within an industry, market, or between nations, often due to technological innovation, market forces, or sociopolitical changes.