Which of the following statements refers to rent seeking?
A)"Laws passed by the federal government often provide benefits for a small number of individuals. These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws."
B)"The federal government should spend more money on programs that help low income citizens and less money on national defense."
C)"The role of the federal government in the U.S. economy grew significantly after the Great Depression. Government spending and taxes are a much greater proportion of total income today than they were in 1929."
D)"There is an opportunity cost whenever the federal government spends tax revenue. For example, an additional $1 billion spent on national defense means there will be less revenue for highway construction and maintenance or some other program."

Question

Quizplus · Accepted Answer

Rent seeking refers to efforts by individuals or groups to use the political process to obtain special privileges, subsidies, or other benefits from the government at the expense of others. The statement "These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws" highlights the rent seeking behavior of those who benefit from such government interventions.

Which of the Following Statements Refers to Rent Seeking