Political economists argue that rent-seeking behavior contributes to the efficiency of government.

Question

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Rent-seeking behavior, which involves individuals or groups seeking to obtain economic gains by manipulating the political and regulatory environment, leads to resource misallocation and increased inefficiency in government decision-making. Political economists argue that rent-seeking behavior is detrimental to economic growth and development. Therefore, it is false to suggest that rent-seeking behavior contributes to the efficiency of government.

Political Economists Argue That Rent-Seeking Behavior Contributes to the Efficiency