Which of the Following Would Be Studied Using a Microtheory

question 25

Multiple Choice

Which of the following would be studied using a microtheory, rather than a macrotheory?

• A)Dating behaviors among college students
• B)The ways in which the courts and the police departments interact within states
• C)The effect of changes in welfare laws on urban poverty
• D)Trends of minority representation within the military
• E)Violent crime trends over a 30-year period

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Definitions:

Financial Asset

Any asset that is cash, the right to receive cash or another financial asset, or an equity instrument of another entity, such as stocks, bonds, or derivatives.

Underlying Asset

An asset upon which a derivative’s price is based, such as stocks, bonds, commodities, or currencies.

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Marking-to-market

The practice of updating the value of an asset to its current market level rather than its book value for accounting purposes.