Economists call the pursuit of a transfer of wealth through government at someone else's expense:

A) the paradox of voting.
B) adverse selection.
C) rent-seeking behavior.
D) the benefits-received principle.

Question

Marisol Velazquez · Accepted Answer

Final Answer : C, Explanation :  Rent-seeking behavior refers to the activities of individuals, groups, or companies that try to obtain economic gain through the political process by seeking advantageous legislation or regulation, government contracts, grants, or subsidies, or by manipulating markets to their own advantage. It involves the pursuit of wealth through the redistribution of resources from others rather than through the creation of value. Rent-seekers use their political power to extract economic rent (i.e., excess profits) from others who are unable to fight back. Economic rent is a payment that exceeds the cost of production, due to market imperfections, government interventions, or exploitation of market power. Rent-seeking behavior is a form of economic waste because it diverts resources from productive activities to unproductive activities that seek to capture a larger share of the economic pie rather than expanding the pie itself.

Economists call the pursuit of a transfer of wealth through government at someone else's expense:

A) the paradox of voting.
B) adverse selection.
C) rent-seeking behavior.
D) the benefits-received principle.

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Learning Objectives

Related questions

Economists call the pursuit of a transfer of wealth through government at someone else's expense:A) the paradox of voting.B) adverse selection.C) rent-seeking behavior.D) the benefits-received principle.

Definitions

Learning Objectives

Learning Objectives

Related questions

Economists call the pursuit of a transfer of wealth through government at someone else's expense:

A) the paradox of voting.
B) adverse selection.
C) rent-seeking behavior.
D) the benefits-received principle.