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Insha Malik
on Oct 08, 2024

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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

The practice of seeking to increase one's share of existing wealth without creating new wealth, often through lobbying or exploiting monopolies.

Government Functions

These are activities or operations carried out by a government to maintain order, provide public services, and enforce legal codes.

Domestically Produced

Refers to goods and services that are created or manufactured within a country's borders.

  • Comprehend the significance of rent-seeking actions and alternate mechanisms in shaping government policy.
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Megan ScanlanOct 09, 2024
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