"If Income Were Redistributed in Favor of the Poor, We

question 30

Multiple Choice

"If income were redistributed in favor of the poor, we would eliminate scarcity." The preceding statement is

• A) essentially correct.
• B) incorrect because scarcity has already been eliminated among the poor in wealthy countries such as the United States.
• C) incorrect; it fails to recognize that poverty will be present as long as resources are scarce.
• D) incorrect; it confuses the elimination of poverty with the elimination of the constraint imposed by scarcity.

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Definitions:

Bid-rigging

A form of fraud where competitors collude to inflate prices in procurement bids, undermining fair competition.

Cartels

Associations of independent businesses or organizations that agree to regulate production, pricing, and marketing of goods to maximize profits.

Winning Bids

Offers in an auction that outmatch all others, securing the auctioned item or service for the bidder.

Bid-rigging

An illegal agreement between parties to fix the outcome of a bidding process to benefit themselves at the expense of others.