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:

Periodic Inventory System

An inventory management system where the inventory count is conducted at specific intervals to determine the cost of goods sold.

Discount Period

The time frame in which a discount is offered for prompt payment of an invoice, encouraging early payment by customers.

Shrinkage

The loss of inventory that can occur from theft, damage, or errors in the counting or recording of stock.