Question

Assume that the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their gambling monopoly. Economists refer to these expenditures as_________.

Answer 1

Answer: The correct answer is "rent-seeking".

Explanation: Economists refer to these expenditures as rent-seeking.

rent seeking occurs when an organization seeks to obtain income by capturing economic income through the manipulation or exploitation of the political or economic environment, instead of obtaining benefits through economic transactions and production of added wealth.