Some Individuals Seek to Use Government Action to Make Themselves

question 188

Multiple Choice

Some individuals seek to use government action to make themselves better off at the expense of others.The actions of these individuals

• A)are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance.
• B)are examples of rent seeking.
• C)offer proof that Adam Smith's "invisible hand" is not valid.
• D)are evidence of the voting paradox.

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Definitions:

Receivable Financing

A financing arrangement where a business uses its accounts receivable as collateral for a loan, improving cash flow.

Commercial Banks

are financial institutions that offer a wide range of services such as accepting deposits, providing business and personal loans, and other financial products and services to the public.

Financial Track Records

Documentation or history that shows the financial performance and health of a company or individual over time.

Credit Risk

Credit Risk is the possibility that a borrower will default on a financial obligation, creating a risk of loss for the lender, which is a key consideration in financial lending and investment decisions.