When considering rent seeking, which of the following is TRUE?

Question

Quizplus · Accepted Answer

Rent seeking is the act of using resources to obtain an economic gain from others without reciprocating any benefits to society. In the case of trade, rent-seeking behavior can be observed when groups lobby for protective policies that benefit them at the expense of others. Generally, the group that is likely to bear the burden of these policies, such as consumers or firms that rely on imported goods, will lobby against them. Therefore, the anti-free trade group is more likely to engage in rent-seeking behavior and lobby more than the pro-free trade group. This is why option D is the correct choice. The other options are incorrect as they do not accurately describe the rent-seeking behavior observed in the context of trade.

When Considering Rent Seeking, Which of the Following Is TRUE