________ acts like a tax on economic activity and encourages rent-seeking behavior rather than productive investment.

Question

Quizplus · Accepted Answer

Corruption acts like a tax on economic activity because it increases the costs of doing business and reduces the efficiency of economic transactions. It also encourages rent-seeking behavior, where individuals or businesses seek to gain financial benefits through manipulation or exploitation of the political environment, rather than through productive investment and innovation.

________ Acts Like a Tax on Economic Activity and Encourages