Quzilet Which of the following statements is true of corruption? Group of answer choices It is based on products and services. It increases the economic development. It causes misallocation of resources. It encourages foreign direct investment.

C).  It causes misallocation of resources.

Explanation:

Corruption is elucidated as the abuse of power by the people in authority/power for personal benefits. They seem to display illegal conduct like bribery, wickedness, impurity, depravity, etc. which impairs the values of morality, virtue, and integrity.

As per the question, option C asserts a true claim about corruption that 'it causes misallocation of resources' because people in power tend to display a fraudulent behavior and thus, exercise control over the resources which leads to exploitation of the resources of the ones who are being ruled or dominated by these. This abusive use of power leads to widening the gap of unequal resource allocation among the people and therefore, the one in power consumes more than required while the others are born and die in poverty. Hence, option C is the correct answer.

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