Suppose American winemakers convince the federal government to issue a directive to serve only domestically produced wine at government functions. This would be an example of

A) moral hazard.
B) the principal-agent problem.
C) logrolling.
D) rent-seeking behavior.

Rent-Seeking Behavior

denotes efforts to increase one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the political environment.

Principal-Agent Problem

A dilemma in which an agent, acting on behalf of a principal, may have incentives to act in their own interest rather than in the best interest of the principal.

American Winemakers

Individuals or companies in the United States that are engaged in the production of wine, contributing to the country's wine industry.