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1 | |
American business managers effectively act as unofficial agents of the U.S. government. |
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| | A) | True |
| | B) | False |
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2 | |
The ability of the federal government to regulate business depends on the interpretation of laws by the U.S. Supreme Court. |
|
| | A) | True |
| | B) | False |
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3 | |
In the U.S. regulatory agencies, the staff of agencies dealing with social programs is substantially smaller than the staff of agencies dealing with economic regulation. |
|
| | A) | True |
| | B) | False |
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4 | |
Measuring the benefits of government regulations is more difficult than calculating the costs of these regulations. |
|
| | A) | True |
| | B) | False |
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5 | |
In Europe, business are much more constrained than in the U.S. in terms of their relationships with labor. |
|
| | A) | True |
| | B) | False |
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6 | |
When one company can supply the entire market for a product at a lower cost than any of the smaller firms, this company is experiencing: |
|
| | A) | externalities. |
| | B) | natural resource regulation. |
| | C) | destructive competition. |
| | D) | a natural monopoly. |
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7 | |
The allocation to businesses by the U.S. government of wavelengths in the electronic spectrum is an example of: |
|
| | A) | destructive competition. |
| | B) | a natural monopoly. |
| | C) | externalities. |
| | D) | natural resource regulation. |
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8 | |
When a large company dominates an industry in such a way that it can cut prices to force competitors to shut down their business, this is an example of: |
|
| | A) | destructive competition. |
| | B) | natural monopoly. |
| | C) | externalities. |
| | D) | natural resource regulation. |
|
9 | |
When a factory dumps toxic waste into a river and the community has to pay to clean up this mess, this is an example of: |
|
| | A) | natural monopoly. |
| | B) | externalities. |
| | C) | destructive competition. |
| | D) | natural resource regulation. |
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10 | |
The GDP of the U.S. in 2002 was approximately _____ trillion dollars. |
|
| | A) | 3 |
| | B) | 6 |
| | C) | 8 |
| | D) | 12 |
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11 | |
Which of the following agencies sets standards for hiring and firing workers? |
|
| | A) | NHTSA |
| | B) | OSHA |
| | C) | EEOC |
| | D) | EPA |
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12 | |
In the U.S., the fundamental authority for federal regulation of business is: |
|
| | A) | The U.S. Constitution. |
| | B) | The Bill of Rights. |
| | C) | The President of the United States |
| | D) | The United States Senate |
|
13 | |
Article 1, Section 8 of the U.S. Constitution gives Congress the power to regulate commerce, and this is called: |
|
| | A) | the commerce clause. |
| | B) | the general welfare clause. |
| | C) | the customers clause. |
| | D) | the employees cause. |
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14 | |
Article 1, Section 8 of the U.S. Constitution gives the power to: |
|
| | A) | levy and collect taxes. |
| | B) | borrow money. |
| | C) | provide for the common defense. |
| | D) | all of the above. |
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15 | |
Any attempt by the government to control the behavior of citizens, corporations, or subgovernments is called: |
|
| | A) | orientation. |
| | B) | regulation. |
| | C) | dissemination. |
| | D) | all of the above. |
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16 | |
Which of the following is another term for "regulation?" |
|
| | A) | Control |
| | B) | Intervention |
| | C) | Influence |
| | D) | All of the above |
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17 | |
Proposals for laws intended to become regulations are called: |
|
| | A) | rules. |
| | B) | bills. |
| | C) | guidelines. |
| | D) | effects. |
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18 | |
Decisions made by regulatory agencies that are intended to implement laws passed by the U.S. Congress are called: |
|
| | A) | rules. |
| | B) | guidelines. |
| | C) | bills. |
| | D) | all of the above. |
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19 | |
Which of the following has complete authority to set U.S. interest rates? |
|
| | A) | The Federal Trade Commission |
| | B) | The EPA |
| | C) | The Federal Reserve Board |
| | D) | The U.S. Congress |
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20 | |
When the draft of a proposed regulation is finished, it must be published in: |
|
| | A) | the U.S. Supreme Court. |
| | B) | the OMB. |
| | C) | The Federal Register. |
| | D) | the EPA. |