One Way to Improve the Social Welfare of a Society

question 32

Multiple Choice

One way to improve the social welfare of a society is to ________ competition and ________ monopoly practices through policy legislation.

• A) limit; encourage
• B) limit; limit
• C) encourage; limit
• D) ban; subsidize
• E) encourage; subsidize

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Definitions:

Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum level, prompting the investor to either deposit more funds or sell assets to cover the shortfall.

Margin Deposit

A deposit required by a broker from a client when they borrow from the broker to buy securities, serving as collateral for the loan.

Long Positions

Investing strategy where an investor buys a security with the expectation that it will increase in value.

Short Positions

An investment strategy where an investor sells borrowed securities with the intention of buying them back at a lower price to profit from a price decline.