Which of the Following Is True Regarding the Doctrine of Liberty

question 18

Multiple Choice

Which of the following is true regarding the doctrine of liberty of contract?

• A) It prohibited the firing at will of employees.
• B) It took care of the unchallenged dominion of employers,thereby reducing the incidents of negligent treatment of workers.
• C) It assumed equal bargaining power for all parties,whereas employers unquestionably predominated.
• D) It ensured that employers found no opportunity to exploit employees.

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Definitions:

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of a good or service.

Gains From Trade

Gains achieved by dividing tasks and trading; in this way people can get more of what they want through trade than they could if they tried to be self-sufficient.

Total Surplus

The sum of consumer surplus and producer surplus; a measure of the total benefit to society from a market transaction.

Consumer Surplus

The differential between consumers’ readiness to pay a certain amount for a service or good and the payment completed.