The term "rent seeking" best describes a situation in which:
A. individuals expend effort searching for a good price on an apartment.
B. consumers compete for a limited quantity of the good.
C. firms use resources to secure or preserve a monopoly in providing a good or service.
D. None of these is a good description of rent-seeking behavior.
Answer: C
You might also like to view...
In one northern town, the snowmobilers enjoy snow while non-snowmobilers hate it. When the town gets two feet of fresh snow, which group is made wealthier?
A) Non-snowmobilers B) Snowmobilers C) Everybody D) Nobody
Which of the following leads to a decrease in real GDP?
A) an increase in interest rates B) an increase in government spending C) an increase in the inflation rate in other countries, relative to the inflation in the United States D) Households have increasingly optimistic expectations about future income.