Rent seeking involves individuals or groups trying to obtain economic benefits through the manipulation of the social or political environment, rather than through productive activity. This can lead to large opportunity costs, as resources are diverted away from productive uses and towards rent-seeking activities.

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Rent Seeking

Question 172

Multiple Choice

Rent seeking

A) often entails large opportunity costs.
B) prevents waste of resources.
C) often promotes fairness in distribution of resources.
D) cannot occur in a planned economy.

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