Here Is an Excerpt Form an Editorial Praising Capitalism in the Economist

question 143

Essay

Here is an excerpt form an editorial praising capitalism in The Economist: "It is competition that delivers choice, holds prices down, encourages invention and service, and (through all these things) delivers economic growth." To what type of competition does the writer refer? Is it the sort of competition that economists study? Explain.

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Definitions:

Registration

The process of recording information officially, often pertaining to a company, security, or property, to ensure legal recognition.

1933 Act

Also known as the Securities Act of 1933, it is a federal law enacted to ensure more transparency in financial statements and prevent fraud in the securities market.

Disclosure

The action of making new or secret information known, often required in legal and financial transactions to ensure transparency.

Dodd-Frank Act

Comprehensive financial reform legislation passed in 2010 in the United States to enhance financial stability and consumer protection.