Some individuals seek to use government action to make themselves better off at the expense of others.The actions of these individuals
A)are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance.
B)are examples of rent seeking.
C)offer proof that Adam Smith's "invisible hand" is not valid.
D)are evidence of the voting paradox.

Question

Quizplus · Accepted Answer

This situation is an example of rent seeking, where individuals use government action to gain an advantage over others. This behavior is common in situations where the cost of the action is spread across many individuals, making it difficult or unlikely for them to organize and oppose it. Rent seeking can lead to inefficiencies in markets and distortions in the allocation of resources.

Some Individuals Seek to Use Government Action to Make Themselves