Radio Stations That Pay Blanket License Fees to ASCAP and BMI

question 14

Multiple Choice

Radio stations that pay blanket license fees to ASCAP and BMI have the right to _______ .

• A) make copies of CDs
• B) sell cover versions of the songs
• C) play their songs over the airwaves
• D) put pictures of the singers on their station website;
• E) Use those songs in the production of commercials

---

Definitions:

Mental Accounting

The tendency people have to create separate “mental boxes” (or “accounts”) in which they deal with particular financial transactions in isolation rather than dealing with them as part of an overall decision-making process that would consider how to best allocate their limited budgets across all possible options by using the utility-maximizing rule.

Price Changes

Variations in the cost of goods and services over time, influenced by inflation, supply and demand, and market dynamics.

Risk Averse

A description of an individual or entity's preference for avoiding loss over making a gain, indicating a higher value placed on avoiding risk than on potential rewards.

Prospect Theory

A behavioral economic theory proposing that people value gains and losses differently, leading to value-driven decision-making rather than strictly rational.