Which of the Statements Best Describes the Difference Between Economic

question 217

Multiple Choice

Which of the statements best describes the difference between economic regulation and social regulation?

• A) There are no significant differences between economic and social regulation, social regulation is a more modern way of regulating an economy.
• B) Economic regulation focuses on output and price; social regulation focuses on improving the quality of life.
• C) Social regulation focuses on output and price; economic regulation focuses on quality of life issues.
• D) Social regulation targets industries like transportation, while economic regulation targets utilities.

---

Definitions:

Equity Hedge Funds

Hedge funds that primarily invest in stocks in order to gain from an expected increase in equity prices.

Systematic Risk

The inherent risk that affects the entire market or market segment, often referred to as market risk or un-diversifiable risk.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of financial markets.

High Water Mark

A clause in fund management contracts that prevents fund managers from receiving large bonuses for poor performance, ensuring they only earn a performance fee when the fund's value exceeds its previous highest value.