Public choice economics questions
1. what is the relationship between rent seeking and economic stagnation?
2.what do special interests often win out over the general interests?
3.how do election affect the timing and incentives for economic policy?
4.what is the incentive structure bureaucrats face?
5. how can the inefficiencies of the political process be lessened?
Rent seeking occurs when a company or an individual uses their resources to obtain an economic gain without reciprocating the benefits back to the society. For intake, a company may lobby the government for loan subsidies or tariff protection. These activities do not benefit the society and thus leads to economic stagnation. As a matter of fact, if many organizations are allowed to have their way with rent seeking, the economy would not grow…