A Free Market System Tends to

question 114

Multiple Choice

A free market system tends to

• A)produce a fairly equal distribution of income.
• B)pay people exactly what they are worth.
• C)produce a relatively unequal distribution of income.
• D)pay most people more than they are worth, at the expense of reducing firms' profits.

Understand the concept of self-regulation and its significance in achieving personal and professional goals.

Describe the effects of reinforcement on behavior modification and its application in the workplace.

Understand the principle of reciprocation and its application in social influence techniques.

Identify and describe various social influence techniques, including foot-in-the-door, low-ball, bait-and-switch, and labeling techniques.

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Definitions:

Cartel

An association of independent businesses or countries that work together to control prices and limit competition within a specific industry.

Price-Fixing Agreement

An illegal arrangement between businesses to set prices at a certain level, typically above market equilibrium, to maximize profits.

Secretly Increasing Sales

The strategy of covertly enhancing a company's sales numbers, possibly through non-transparent marketing tactics or undisclosed discounts.

Collusion

A non-competitive secret or illegal agreement between rivals that attempts to disrupt the market's equilibrium by influencing the market mechanism such as price or output of goods and services.