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:

Word-Of-Mouth Testimonials

Consumer recommendations and opinions communicated verbally, considered a powerful form of promotion due to its perceived authenticity and trustworthiness.

Reference Groups

People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

Self-Appraisal

The process of evaluating one's own performance, strengths, and weaknesses, often used in professional development contexts.

Personal Standards

Individual criteria or guidelines set by oneself that dictate one's quality of work, behavior, and lifestyle.