This paper by Jagdish N. Bhagwati introduces the concept of directly unproductive, profit-seeking (DUP) activities, which encompass a wide range of economic activities, including rent-seeking. The author proposes a fourfold categorization of DUP activities based on the levels of distortions before and after the activity, aiming to unify and overview the subject. The paper discusses the welfare implications of these activities, distinguishing between initially distorted and initially distortion-free situations. It argues that in initially distorted situations, DUP activities can paradoxically lead to welfare improvement, while in initially distortion-free situations, they can lead to welfare deterioration. The analysis is applied to specific examples such as tariff evasion, premium seeking, and revenue seeking, showing how these activities can affect resource allocation and economic welfare. The paper concludes by synthesizing existing literature within a general welfare-theoretic framework.This paper by Jagdish N. Bhagwati introduces the concept of directly unproductive, profit-seeking (DUP) activities, which encompass a wide range of economic activities, including rent-seeking. The author proposes a fourfold categorization of DUP activities based on the levels of distortions before and after the activity, aiming to unify and overview the subject. The paper discusses the welfare implications of these activities, distinguishing between initially distorted and initially distortion-free situations. It argues that in initially distorted situations, DUP activities can paradoxically lead to welfare improvement, while in initially distortion-free situations, they can lead to welfare deterioration. The analysis is applied to specific examples such as tariff evasion, premium seeking, and revenue seeking, showing how these activities can affect resource allocation and economic welfare. The paper concludes by synthesizing existing literature within a general welfare-theoretic framework.