Question 1 All of the following are economic justifications for the regulation o

Question

Question 1

All of the following are economic justifications for the regulation of business except for:

Select one:

a. Monopoly behavior.

b. Externalities.

c. Lack of adequate information by consumers.

d. The need to generate additional tax revenues.

Question 2

The legal basis for the regulation of business was established by:

Select one:

a. The U.S. Constitution.

b. The United Nations.

c. The Supreme Court.

d. The Bill of Rights.

Question 3

Proponents of government deregulation claim that it will:

Select one:

a. Increase competition.

b. Create greater efficiency.

c. Encourage innovation.

d. All of the above.

Question 4

Which of the following is an example of market failure?

Select one:

a. Monopoly.

b. Pollution.

c. Inability to purchase essential goods.

d. All of the above.

Question 5

A _______ specifies when a government regulatory program will end.

Select one:

a. Sunset law.

b. Sunrise law.

c. Anti-trust law.

d. Government mandate.

Question 6

When a retail clothing chain decides to purchase a manufacturing company in order to make its own products instead of purchasing these products from a supplier, this represents which type of merger?

Select one:

a. Horizontal.

b. Lateral.

c. Concentration.

d. Vertical.

Question 7

The power of a nation to govern its own affairs free of outside interference is that nation’s:

Select one:

a. Military.

b. Sovereignty.

c. Trade Agreements.

d. None of the above.

Question 8

U.S. environmental policies:

Select one:

a. Must be approved by the United Nations.

b. Impose all of their costs on businesses, not consumers.

c. Limit the size of public utilities.

d. None of the above.

Question 9

Globalization:

Select one:

a. Lowers prices and lowers productivity.

b. Lowers prices and increases productivity.

c. Raise prices and lowers productivity.

d. Raises prices and increases productivity.

Question 10

Multinational corporations:

Select one:

a. need approval from the United Nations to operate.

b. are not subject to U.S. laws.

c. only operate in countries with democratic governments.

d. have revenues greater than the GDP's of many countries.

Explanation / Answer

1. Option D is correct.

Intervention in business regulation is appropriate when there is market failure or excess market power or inadequate supply of information to the consumers.

2. Option A is correct.

The US constitution gave the rights on legal basis for the regulation of businesses in the United States.

3. Option A is correct.

Proponents argue that the price in teh regulated economy is much higher than that would have been in case of free market economy. With deregualtion, there'll be more competition and hence lower prices would prevail.

4. Option B is correct.

Market failure is a situation where the private players fail to supply the goods and services or the market for certain goods does not exists. Like pollution.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.