In Certain High-Cost Defense Contracts Involving New Weapons and Equipment

question 133

Multiple Choice

In certain high-cost defense contracts involving new weapons and equipment, contracts are rarely subject to competitive bidding because ________.

• A) the government taxes the defense companies at a higher level than that of other public sector companies
• B) there is an implicit agreement among defense contractors to "share contracts"
• C) all defense contractors have essentially the same cost structure
• D) no contractor is willing to assume all the risk of receiving a fixed price for the contract

---

Definitions:

Biomedical Approach

A perspective that attributes psychological disorders to biological phenomena, such as genetic factors, brain chemistry, and neural activity.

Insightful Approach

A method or strategy characterized by the ability to understand complex or hidden aspects of a problem, leading to a novel solution.

Labor Law

The body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.

Employer Needs

The requirements or demands of employers that need to be met for operational success, including staffing, productivity, and regulatory compliance.