When a Court Strikes Down an Unreasonable Agreement Between an Employer

question 2

Multiple Choice

When a court strikes down an unreasonable agreement between an employer and employee that restricts the future economic freedom of the employee, the court serves two public interests, namely protecting employees and

• A) maintaining peaceful workplaces.
• B) protecting businesses.
• C) applying the law law.
• D) protecting the management of businesses.
• E) protect the mobility of labour.

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Definitions:

Government Failure

Occurs when government intervention in the economy causes an inefficient allocation of resources and leads to a net loss of economic welfare.

Special-interest Effect

The impact of a small, organized group on political or economic decisions, often in a way that benefits the group at the expense of the general public.

Positive Externalities

Benefits experienced by third parties due to the actions of others, for which the third party does not pay.

Chronic Budget Deficits

Persistent shortfalls in a government's budget where expenditures surpass revenues over an extended period.