Which of the Following Is True About Final-Offer Arbitration

question 12

Multiple Choice

Which of the following is true about final-offer arbitration?

• A) The process of final-offer arbitration results in an extreme contract the loser would do anything to avoid in the future.
• B) The use of entire-package approaches is unknown in final-offer arbitration.
• C) Final-offer arbitration has been implemented in some states to encourage the use of arbitration.
• D) Where final-offer selection is available on an issue-by-issue basis,less unresolved issues reach the arbitrator.

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Definitions:

Price Floor

A government-set minimum price for goods or services, above the market equilibrium price, aimed at preventing prices from falling too low.

Price Controls

Government-imposed limits on prices charged for goods and services to manage economy.

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service does not reach or cannot reach its equilibrium.

Quotas

Limits set by government on the quantity of goods that can be imported or produced, intended to protect domestic industries.