Identify whether each statement describes rentseeking behavi

Identify whether each statement describes: rent-seeking behavior, corruption, lack of flexibility and innovation, or inefficiency of taxation.

1.) ABSCAM, a sting operation that occurred in the late 1970\'s and early 1980\'s, resulted in the conviction of U.S. Congressmen and Senators that were convicted of accepting bribes for political favors.

a. Inefficiency of taxation

b. Rent-seeking behavior

c. Lack of flexibility and innovation

d. Corruption

2.) The country of Alpha prohibits the implementation of the Internet to its citizens.

a. Inefficiency of taxation

b. Rent-seeking behavior

c. Lack of flexibility and innovation

d. Corruption

3.) Some cities are considering a per-ounce tax on products that contain sugar, like soft drinks.

a. Inefficiency of taxation

b. Corruption

c. Lack of flexibility and innovation

d. Rent-seeking behavior

4.) A politician accepts a large contribution for his/her campaign from the tobacco industry.

a. Lack of flexibility and innovation

b. Inefficiency of taxation

c. Rent-seeking behavior

d. Corruption

Solution

1. Accepting a bribe for political favor or any type of bribe is comes under the corruptions. options d.

2. prohibits the implementation of the internet to its citizens causes lack of flexibility and innovations. option c

3. Charging a per ounce tax on the products that contain sugar, like a soft drink does not show efficient taxation system. it means there is the inefficiency of taxation.

4. rent seeking involves seeking to increase one\'s shares of existing wealth without creating new wealth or obtain economic gain without reciprocating any benefits to society through wealth creations. when a politician accepts a large contribution for his campaign from the tobacco industry, it is direct benefits of the politician without reciprocating any benefits to society. option c.