The notion that the government becomes the tool of the rent seeker and makes the allocation of resources even less efficient than before is known as ________ and is described in ________.
A) rent-seeking; public choice theory
B) government failure; public choice theory
C) collusion; conspiracy theory
D) discrimination; conspiracy theory

Question

Quizplus · Accepted Answer

Government failure is described in public choice theory as a situation where the government becomes the tool of the rent seeker, leading to inefficient allocation of resources.

The Notion That the Government Becomes the Tool of the Rent