An External Economy Occurs When

question 39

Multiple Choice

An external economy occurs when

• A) library facilities of a university are open to the general public without charge.
• B) wealthy individuals are taxed more heavily to support programs to help poor people.
• C) a consumer buys a hamburger and a milkshake.
• D) someone attends a regular Academy of Music performance of the Philadelphia Orchestra.
• E) people smoke in public facilities.

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Definitions:

Prospectus

An official document that companies must publish when offering new shares to the public, detailing the investment's risks, objectives, and financial statements.

SEC

Abbreviation for the Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.

1933 Act

The Securities Act of 1933, a U.S. legislation that requires detailed disclosure of financial information from issuers of public securities to protect investors.

Permanent Resident

An individual who has been granted the legal right to live indefinitely within a country other than their nationality.