ICM,a major manufacturer of computers,announces it will build a large manufacturing facility in Manitoba,and choose either Winnipeg or Gimli.The following data summarize the economic impact to the two cities.
-Refer to the information above.The competition between Winnipeg and Gimli for ICM through reduced property taxes is an example of

Question

ICM,a major manufacturer of computers,announces it will build a large manufacturing facility in Manitoba,and choose either Winnipeg or Gimli.The following data summarize the economic impact to the two cities. 
-Refer to the information above.The competition between Winnipeg and Gimli for ICM through reduced property taxes is an example of

Quizplus · Accepted Answer

The competition between Winnipeg and Gimli for ICM through reduced property taxes is an example of rent-seeking. Rent-seeking refers to the use of resources, such as time and money, to obtain economic rent (i.e. benefits) from others without creating any benefits of equal value in return. In this case, both cities are seeking to attract ICM to their area by offering tax incentives, which is a way of obtaining economic rent without creating any new benefits in return.

ICM,a Major Manufacturer of Computers,announces It Will Build a Large