Refer to Scenario 3

question 148

Multiple Choice

Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
-Refer to Scenario 3.1. In response to complaints from movie theater owners, the government removes an entertainment tax on movie tickets, but there are no additional taxes levied on rented DVDs. This would lead to

Definitions:

Claims

Formal requests or demands for payment or compensation for losses or damages covered under an insurance policy.

Without Recourse

A term indicating that the seller of a financial instrument or property transfers all risk of non-payment or defect to the buyer, absolving the seller of liability.

Specially Endorses

When a negotiable instrument, such as a check, is endorsed by specifying the person to whom it should be paid, creating restrictions on its further negotiation.

Shelter Rule

A legal principle allowing a transferee to obtain the rights of a transferor in a transaction, even if the transferor lacked certain rights, under certain conditions.