When a Market Is Efficient

question 46

Multiple Choice

When a market is efficient:

• A) there is no exchange that can make anyone better off without someone becoming worse off.
• B) a central planner must be involved.
• C) total surplus is zero.
• D) an increase in price will reduce the deadweight loss.

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Definitions:

Contract Language

The specific wording and terms used in contracts that define the rights, obligations, and procedures for the parties involved.

Beck Rights

Rights stemming from a U.S. Supreme Court decision that allow union members to object to their dues being used for political or other non-bargaining activities and to pay only that portion of dues necessary for contract negotiations and administration.

Agency Shop Agreements

Labor agreements that require employees to pay union fees even if they are not union members as a condition of employment, supporting the union's bargaining efforts on their behalf.

Grievance Arbitration

A procedure used in labor relations to resolve disputes or grievances between employees (or their representatives) and employers through the intervention of a neutral third party or arbitrator.