Rent seeking is the pursuit of wealth by capturing economic rent, which is the surplus value that is earned through control of a scarce resource or market. It often involves lobbying for favorable government policies or regulations that benefit a particular industry or individual, rather than creating new value or increasing efficiency.

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Rent Seeking

Question 50

Multiple Choice

Rent seeking

A) is an attempt by landlords to financially harm tenants.
B) is the pursuit of wealth by capturing economic rent.
C) is an attempt by individuals to avoid paying taxes.
D) occurs when owners of a monopoly sell the firm at the highest possible price.
E) is a means of eliminating deadweight loss.

Correct Answer: