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)a means of eliminating deadweight loss.

Question

Quizplus · Accepted Answer

Rent seeking refers to the pursuit of wealth by capturing economic rent, which is the difference between what people are willing to pay for a resource and the minimum payment necessary to bring that resource into production. Rent seeking can result in inefficiencies and deadweight losses for society, as resources are diverted from productive uses to the pursuit of rent.

Rent Seeking Is Best Defined as