Voluntary Exchanges

question 5

Multiple Choice

Voluntary exchanges:

• A)generate surplus,leaving both participants better off than they were before.
• B)generate deadweight loss,leaving both participants worse off than they were before.
• C)generate deadweight loss,leaving at least one participant worse off than they were before.
• D)create a transfer of surplus from one participant to another.

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Definitions:

Compliance

Partial success of an influence attempt by a leader: The person makes a modest effort.

Resistance

The state that occurs when an influence attempt by a leader is unsuccessful: The target is opposed to carrying out the request and finds ways to either not comply or do a poor job.

Good-natured Kidding

Light-hearted teasing or joking among individuals in a friendly and well-intentioned manner.

Straightforward Statement

A clear and uncomplicated expression or declaration, without ambiguity or complexity.