When considering rent seeking,which of the following is TRUE?
A)The anti-free trade group generally will lobby more than the pro-free trade group.
B)The pro-free trade group generally will lobby more than the anti-free trade group.
C)Usually only the anti-free trade group is concerned about what is best for society at large.
D)Only the pro-free trade group is concerned about the government's revenue from tariffs.
E)Rent seeking is the primary reason why consumers gain from free trade.

Question

Quizplus · Accepted Answer

Rent seeking occurs when individuals or groups attempt to use the political process to obtain benefits that would be difficult or impossible to obtain through market transactions. In the case of free trade, the anti-free trade group may engage in rent seeking by lobbying for tariffs or trade barriers that would protect domestic industries from foreign competition. The pro-free trade group may also engage in rent seeking, but their interests are aligned with the overall benefits of free trade, such as lower prices for consumers and increased global competitiveness for domestic industries. Therefore, it is likely that the anti-free trade group will lobby more than the pro-free trade group, as they have more to gain from rent seeking activities. However, it is not true that only the anti-free trade group is concerned about what is best for society at large, or that rent seeking is the primary reason why consumers gain from free trade.

When Considering Rent Seeking,which of the Following Is TRUE