One Important Difference Between the Political Process and the Market

question 97

Multiple Choice

One important difference between the political process and the market process is that

• A)the political process results in collective actions in which not everyone is required to participate, while in the market process individuals are obliged to participate.
• B)the political process results in collective actions in which everyone is obliged to participate, while in the market process individuals are free to participate or not.
• C)the political process results in collective actions that maximize economic surplus, while the market process may lead to efficiency losses.
• D)the political process results in collective actions in which everyone is made better off, while the market process results in actions that favor some groups only.

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Definitions:

Union Steward

A representative of unionized workers who serves as the liaison between the employees and the management, safeguarding the interests and rights of the union members.

Labor Agreement

A formal contract between employers and employees (often through their unions) outlining wages, working conditions, and other employment terms.

Union Representative

An individual elected or appointed to represent and defend the interests of union members in discussions with employers.

Union-Management Relationship

The ongoing interaction and negotiation process between a company's management and the labor union representing its employees.