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)None of the above

Question

Quizplus · Accepted Answer

Rent seeking refers to the act of using resources to increase one's share of existing wealth without creating any new wealth. In the context of trade policy, rent seeking occurs when individuals or groups try to influence trade policy to gain a competitive advantage or protect their interests. Typically, the group that stands to lose the most from free trade will lobby the most against it. Therefore, in this case, the anti-free trade group will generally lobby more than the pro-free trade group. Choice A is the only option that accurately reflects this statement.

When Considering Rent Seeking, Which of the Following Is TRUE