Answer:
Rent-seeking can be defined as an economic concept in which an individual or a business entity seeks to increase their own wealth without creating any benefits or contributions of productivity to the society, especially by manipulating economic conditions or public policies.
Explanation:
In Economics, rent-seeking can be defined as an economic concept in which an individual or a business entity seeks to increase their own wealth without creating any benefits or contributions of productivity to the society, especially by manipulating economic conditions or public policies. Thus, it typically involves using one's existing assets and resources to gain added wealth, benefits or profits without any form of reciprocal contributions by creating new sources of wealth in a society.
Generally, rent-seeking usually causes a loss of government revenue, reduced wealth creation, high income inequality, and economic inefficiency through improper allocation (misallocation) of scarce resources.
