The process of using public policy to gain economic profit is
A) deadweight loss.
B) never successful.
C) rent seeking.
D) illegal.

Question

Quizplus · Accepted Answer

Rent seeking refers to the process of using public policy or government processes to gain economic profit. It often involves lobbying for favorable regulations or subsidies, and can lead to inefficiencies and inequality in the economy. It is not illegal, but it can be harmful to overall economic growth and welfare. A and B are incorrect as deadweight loss refers to the loss of economic efficiency due to market inefficiencies, and it is not necessarily related to rent seeking. Neither is it true that using public policy to gain economic profit is never successful. D is incorrect as rent seeking is not illegal, as long as it does not involve illegal or unethical practices.

The Process of Using Public Policy to Gain Economic Profit