Why do the Hunger Games exist?
According to Katniss, they are the Capitol's way of punishing the Districts for rebelling. They also work to quell future rebellions. They may distract the Districts from their own oppression, and inspire awe at the power and opulence of the Capitol. The Hunger Games are a show of strength: they demonstrate the power of the Capitol to kill children, and by televising it they make the audience complicit in the killing.
Why do you think potential tributes have the option to trade additional entries for grain and oil?
One possible explanation is that the Capitol does this in order to ensure that most of the tributes are poor....
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