Question

give an example of rent-seeking behavior

Answer 1

A rent seeking behaviour is said to happen when a corporation uses its own resources to make money and not providing anything back to the society or not to create wealth, the money is used by the business to get surplus of someone else.

Example: A company hires a lobbyist to influence government to make policies which favour his company over others. In this case the money paid to the the lobbyist but it is not paid to generate any wealth or to provide anything to the society but to gain surplus from its competitors. This rent seeking behaviour doesn’t add any value to the nation.