"Rent-seeking" is a problem of

Question

Quizplus · Accepted Answer

Rent-seeking behavior refers to activities that individuals or companies engage in to obtain economic rent (i.e., a return on their investment that exceeds the minimum necessary to keep them producing) without contributing to the production of goods or services. The existence of government is necessary for rent-seeking to be a problem, as it involves using government influence or power to secure economic rents, which is not possible in purely free-market or centrally planned economies where government intervention is limited or non-existent.

"Rent-Seeking" Is a Problem of