In the 1970s the American automobile manufacturers banded together to petition the government not to lower tariffs on Japanese-made automobiles. This action was a form of rent-seeking.

Question

Quizplus · Accepted Answer

Rent-seeking occurs when companies or individuals attempt to gain economic benefits through manipulation or exploitation of the political environment, such as lobbying for regulations or policies that favor them, like tariffs to reduce foreign competition, rather than through productive economic activities.

In the 1970s the American Automobile Manufacturers Banded Together to Petition