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:

Convenience Goods

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Expense Item

An expenditure or cost incurred by a business or individual, which is recorded and tracked for financial accounting purposes.

Introductory Stage

The initial phase in the product life cycle, characterized by product launch, limited distribution, and marketing efforts to build awareness.

Moisturizing Shampoo

A hair care product specifically formulated to add moisture and prevent dryness.