Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a. Rent seeking is an effort to get a share of a government contract. charging higher rents for properties in high demand. an appeal to
a. Rent seeking is
- an effort to get a share of a government contract.
- charging higher rents for properties in high demand.
- an appeal to the government for special benefits at the taxpayers' or someone else's expense.
- an appeal to the government for special taxes to be applied to a certain group of firms.
b. Rent seeking is different from profit maximization because rent seeking
- attempts to increase profit by influencing the political process.
- is an effort to minimize cost, not maximize profit.
- attempts to increase profit by raising rents, not by producing a product.
- increases both revenue and cost, so its influence on profit is unclear.
c. An example of rent seeking is
- a domestic industry group using resources to try to block imports.
- a firm using resources to try to develop new technologies.
- a professional organization trying to establish a new membership base.
- a neighborhood association establishing restrictions on traffic patterns.
d. Elected officials often accommodate rent-seeking behavior, particularly by firms, unions, and professional groups located in their home states, because these groups
- support the elected officials with financial and nonfinancial resources.
- are the largest voting block.
- represent all voters.
- are the only groups allowed to appeal to elected officials.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started