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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The process by which individuals act and react in relation to others within the social structure.

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A process or action that establishes communication or interaction between two or more points, entities, or individuals.

Social Interactions

Exchanges between individuals or groups, involving communication, cooperation, or conflict, which occur in person or through digital platforms.