An Efficient Contract Is an Agreement in Which

question 2

Multiple Choice

An efficient contract is an agreement in which

• A) neither party can be made better off without harming the other party.
• B) both parties agree on its clauses.
• C) one party takes all.
• D) both parties agree to always do their best.

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Definitions:

Credit

The provision of resources (such as money) now in exchange for repayment in the future, with or without interest.

Blame

The act of holding someone responsible for something wrong or unfortunate.

Stereotyping

The oversimplified and generalized beliefs or expectations about individuals based on their membership in a certain group.

Stereotyping

The process of attributing a specific set of traits to a collective of individuals, disregarding their unique differences.