Jagdish N. Bhagwati proposes the concept of directly unproductive, profit-seeking (DUP) activities, which encompass a wide range of economic activities, including rent-seeking activities analyzed by Krueger. He categorizes DUP activities into four types based on the levels of distortions before and after the activity. These activities involve using real resources to generate profit without producing goods or services that directly contribute to utility. Examples include tariff-seeking lobbying, tariff evasion, and premium seeking for import licenses. DUP activities can be analyzed in terms of their welfare impact. In initially distorted situations, DUP activities may paradoxically improve welfare, while in distortion-free situations, they may worsen welfare. The paper discusses how these activities can be legal or illegal, and how they affect social welfare. It also highlights the difference between distortion-free and distorted situations, and how the welfare consequences vary accordingly. The paper analyzes different types of DUP activities, such as premium seeking, revenue seeking, and tariff seeking, and shows how they fit into the four categories. It also discusses the welfare consequences of these activities, noting that in some cases, even though resources are used unproductively, the overall outcome can be beneficial. The paper concludes that DUP activities are a significant area of economic analysis, with important implications for policy and welfare.Jagdish N. Bhagwati proposes the concept of directly unproductive, profit-seeking (DUP) activities, which encompass a wide range of economic activities, including rent-seeking activities analyzed by Krueger. He categorizes DUP activities into four types based on the levels of distortions before and after the activity. These activities involve using real resources to generate profit without producing goods or services that directly contribute to utility. Examples include tariff-seeking lobbying, tariff evasion, and premium seeking for import licenses. DUP activities can be analyzed in terms of their welfare impact. In initially distorted situations, DUP activities may paradoxically improve welfare, while in distortion-free situations, they may worsen welfare. The paper discusses how these activities can be legal or illegal, and how they affect social welfare. It also highlights the difference between distortion-free and distorted situations, and how the welfare consequences vary accordingly. The paper analyzes different types of DUP activities, such as premium seeking, revenue seeking, and tariff seeking, and shows how they fit into the four categories. It also discusses the welfare consequences of these activities, noting that in some cases, even though resources are used unproductively, the overall outcome can be beneficial. The paper concludes that DUP activities are a significant area of economic analysis, with important implications for policy and welfare.