Rent seeking is one reason why countries choose to
A) restrict trade.
B) export and import the same goods.
C) work for freer trade.
D) follow the theory of comparative advantage.

Question

Quizplus · Accepted Answer

Rent seeking is a concept where entities seek to increase their own wealth without creating new wealth or value, often through manipulating the political environment to gain special advantages, such as trade restrictions. These restrictions can protect domestic industries from foreign competition, allowing them to charge higher prices and earn more without necessarily being more efficient or innovative.

Rent Seeking Is One Reason Why Countries Choose to