When a Perfectly Competitive,well-Functioning Market Is Not in Equilibrium

question 115

Multiple Choice

When a perfectly competitive,well-functioning market is not in equilibrium:

• A) total surplus is not maximized.
• B) there are no exchanges that can make some better off without someone becoming worse off.
• C) the market is efficient.
• D) All of these are true.

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Definitions:

Distributive Fairness

Refers to the perceived fairness of outcomes and resource distributions within an organization or social group.

Procedural Fairness

The perceived fairness of the processes and methods used to make decisions and resolve disputes.

Input/Outcome Ratio

is a concept in equity theory that refers to an individual's perception of the fairness of their work input compared to the outcomes or rewards they receive.

Procedural Unfairness

The perception that the processes used to make decisions or resolve disputes are unjust, biased, or lacking in transparency.