Asked by Cassidy Jones on Jul 04, 2024
Verified
Suppose American winemakers convince the federal government to issue a directive to serve only domestically produced wine at government functions. This would be an example of
A) moral hazard.
B) the principal-agent problem.
C) logrolling.
D) rent-seeking behavior.
Rent-Seeking Behavior
denotes efforts to increase one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the political environment.
Principal-Agent Problem
A dilemma in which an agent, acting on behalf of a principal, may have incentives to act in their own interest rather than in the best interest of the principal.
American Winemakers
Individuals or companies in the United States that are engaged in the production of wine, contributing to the country's wine industry.
- Uncover the causes behind the ineffectiveness of governments, particularly those related to rent-seeking activities and special-interest group influences.
Verified Answer
Learning Objectives
- Uncover the causes behind the ineffectiveness of governments, particularly those related to rent-seeking activities and special-interest group influences.
Related questions
Which of the Following Is Related to the Special-Interest Effect ...
The Special-Interest Effect Is One That Yields ...
Suppose Lawyers Seek Legislation to Limit the Use of Computer ...
When the Special-Interest Effect Is the Major Reason for the ...
Special-Interest Groups Result from People with Strong Preferences on a ...