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Mickala Weisner
on Dec 11, 2024

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When governments become more heavily involved in taxing one group in order to provide benefits to other groups, which of the following will be encouraged?

A) rapid economic growth
B) rent-seeking activity
C) an improvement in the efficiency of government bureaucracies
D) competitive private markets

Rent-seeking Activity

Actions by individuals or firms to increase their own wealth without creating new wealth or value for society.

Taxing

The act of imposing charges on individuals or entities by the government in order to finance public spending and services.

Benefits

The advantages or positive outcomes that accrue from actions, activities, or projects, often used in evaluating decisions.

  • Identify the expected consequences of heightened governmental action, including the occurrence of rent-seeking behavior.
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Ciara PetersenDec 16, 2024
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