Rent-seeking is the term used to describe

Question

Quizplus · Accepted Answer

Rent-seeking refers to the efforts made by private actors to utilize the political system to gain economic benefits that are beyond the market level. These benefits are often sought through the use of lobbying, corruption, or other means that are not necessarily conducive to market efficiency. Public officials may be involved in rent-seeking activities, but the term specifically refers to private actors seeking benefits through political means. Option A is incorrect because it implies that public officials are the ones seeking higher-than-market returns, while option B is incorrect because it suggests that public officials are using economic means to achieve political gains. Option D is incorrect because it refers to public officials pressuring producers to pay higher taxes, which is not necessarily an example of rent-seeking. Finally, option E is too broad and includes corrupt practices that may not necessarily involve rent-seeking.

Rent-Seeking Is the Term Used to Describe