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:

Regulate

To control or maintain the rate or speed of a machine or process so that it operates properly; to control something, especially by making it work in a particular way.

Own Behavior

Refers to an individual's actions or conduct, typically considered from the perspective of self-monitoring or self-awareness.

Labeling Theory

A perspective in sociology and criminology that considers the labeling of individuals or groups as deviant to play a significant role in their identification and behavior as such.

Normalization

The process of making something standard, normal, or acceptable within a societal or group context.