Attempts by special-interest groups to gain favorable treatment from government are called
A)utility maximizing
B)profit seeking
C)rent seeking
D)profit maximizing
E)rent minimizing

Question

Quizplus · Accepted Answer

Rent seeking is the term used to describe the actions of special interest groups who attempt to use the political and legislative process to gain preferential treatment or benefits for themselves at the expense of others. This can include seeking subsidies, tax breaks, regulations that disadvantage their competitors, or other forms of government intervention that benefit them. Utility maximizing and profit maximizing are general economic concepts that do not necessarily relate to rent seeking, while profit seeking is a more narrow concept that implies a focus on business profitability rather than political influence. Rent minimizing is not an economic concept.

Attempts by Special-Interest Groups to Gain Favorable Treatment from Government