Why Is the Securities and Exchange Commission Important in a Free-Market

question 62

Multiple Choice

Why is the Securities and Exchange Commission important in a free-market economy?

• A) It regulates and controls monopolies and commerce.
• B) It helps provide oversight to ensure transparent capital markets.
• C) It ensures fair political competition without undue influence of money and donations.
• D) It enforces laws that protect property rights, allowing businesses to have confidence that another firm will not steal their trade secrets and intellectual property.

---

Definitions:

S And D Curves

Supply and Demand curves; graphical representations of the relationship between the quantities of goods and services that producers are willing to sell and consumers are willing to buy at various prices.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, due to higher market prices.

Equilibrium Point

The point at which market supply and demand balance each other, and as a result, prices become stable.

S And D Curves

Stand for Supply and Demand curves, graphical representations in economics that illustrate the relationship between the quantity of goods available for sale and the quantity of goods that consumers are willing and able to buy at various prices.