Which statement about rent seeking is INCORRECT?
A) It may not involve rent in the sense of payment for the use of property.
B) It is a form of beneficial competition.
C) It aims at securing monopoly rights.
D) It is motivated by a desire for increased profits.
E) It is often associated with lobbying of policymakers.

Question

Quizplus · Accepted Answer

Rent seeking is not a form of beneficial competition. Instead, it is a behavior in which individuals or firms try to obtain economic gains by manipulating the social or political environment they operate in. This manipulation may result in reduced economic efficiency and social welfare. Therefore, rent seeking is often considered as a negative activity.

Which Statement About Rent Seeking Is INCORRECT