One Way to Improve the Social Welfare of a Society

question 32

Multiple Choice

One way to improve the social welfare of a society is to ________ competition and ________ monopoly practices through policy legislation.

• A) limit; encourage
• B) limit; limit
• C) encourage; limit
• D) ban; subsidize
• E) encourage; subsidize

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Definitions:

CDs

Certificates of Deposit, a type of time deposit at banks and financial institutions offering a fixed interest rate over a fixed period.

Management Fees

Charges paid by investors in a fund (such as mutual funds or hedge funds) to the managers for their services in managing the fund's portfolio.

Front-End Loads

Front-End Loads are fees paid by investors at the time of purchasing mutual fund shares, which reduce the amount of investment actually placed into the fund.

Back-End Loads

Fees paid by investors when selling mutual fund shares, often used to discourage quick or short-term trading.