Rent seeking is best defined as
A)an attempt by landlords to get tenants.
B)the pursuit of wealth by capturing economic rent.
C)an attempt by individuals to avoid paying taxes.
D)owners of a monopoly selling the firm at the highest possible price.
E)none of the above.

Question

Quizplus · Accepted Answer

Rent seeking refers to the pursuit of wealth through capturing economic rent, which is defined as the excess income earned by an individual or firm above what would be earned in a perfectly competitive market. This can take the form of lobbying for government favors or regulations that benefit a specific industry or company, or using market power to extract higher prices from consumers. The other choices do not accurately capture the meaning of rent seeking.

Rent Seeking Is Best Defined as