What Act Was Passed in 2002 as a Response to a Number

question 97

Multiple Choice

What act was passed in 2002 as a response to a number of highly publicized accounting scandals?

• A) Sarbanes-Oxley Act
• B) McCain-Feingold Act
• C) Securities and Exchange Act
• D) Accounting Standards Act
• E) Dodd-Frank Act

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Definitions:

Deadweight Loss

A loss in economic efficiency that occurs when the equilibrium outcome is not achievable or is not achieved.

Elastic

A characteristic of a good or service that indicates its sensitivity to changes in price, with relatively large changes in quantity demanded or supplied in response to price changes.

Inelastic

Inelastic describes a situation where the demand or supply for a good or service is not significantly changed by variations in price.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they do pay.