Question 1

Price fixing among businesses is legal as long as it results in lower costs.

Accepted Answer

A) True 
 B)False  False

Question 2

A government regulation, to be valid, must be

Accepted Answer

A)  approved by the voters. 
B)  needed to promote a public interest. 
C)  reasonable. 
D)  needed to promote a public interest and reasonable. 
A)  approved by the voters. 
B)  needed to promote a public interest. 
C)  reasonable. 
D)  needed to promote a public interest and reasonable. D

Question 3

Price discrimination is

Accepted Answer

A)  the ability of consumers to compare prices of similar products. 
B)  illegal because it eliminates competition. 
C)  another term for government's effort to regulate utilities costs. 
D)  none of these. 
A)  the ability of consumers to compare prices of similar products. 
B)  illegal because it eliminates competition. 
C)  another term for government's effort to regulate utilities costs. 
D)  none of these. B

Question 4

An example of an illegal monopoly is

Accepted Answer

A)  a national labor union. 
B)  the only electric company in the state. 
C)  a commuter airline that has eliminated competition by slashing prices. 
D)  the only farmers' cooperative in three states. 
A)  a national labor union. 
B)  the only electric company in the state. 
C)  a commuter airline that has eliminated competition by slashing prices. 
D)  the only farmers' cooperative in three states.

Question 5

The most important law passed by Congress to prevent monopolies is called the

Accepted Answer

A)  Miller-Tydings Act. 
B)  Russell Act. 
C)  Sherman Act. 
D)  Fair Trade Act. 
A)  Miller-Tydings Act. 
B)  Russell Act. 
C)  Sherman Act. 
D)  Fair Trade Act.

Question 6

The administrative body that regulates the sale of securities is the ____________________.

Accepted Answer

Securities

Question 7

Independent regulatory agencies are created by ____________________.

Accepted Answer

The answer of Independent regulatory agencies are created by ____________________....

Question 8

Sunday laws, while legal, are gradually being repealed or ignored.

Accepted Answer

A) True 
 B)False

Question 9

Congressional power to protect the environment arises from Congress's constitutional power to

Accepted Answer

A)  regulate intrastate commerce. 
B)  provide for the general welfare. 
C)  impose taxes. 
D)  regulate business. 
A)  regulate intrastate commerce. 
B)  provide for the general welfare. 
C)  impose taxes. 
D)  regulate business.

Question 10

Administrative agencies exist at federal, state, and local levels.

Accepted Answer

A) True 
 B)False

Question 11

The purpose of licensing laws is

Accepted Answer

A)  to protect the public. 
B)  to require persons to meet educational standards. 
C)  to require applicants to show competence. 
D)  all of these. 
A)  to protect the public. 
B)  to require persons to meet educational standards. 
C)  to require applicants to show competence. 
D)  all of these.

Question 12

Congress has almost unlimited power to control business activity.

Accepted Answer

A) True 
 B)False

Question 13

The authority of government to regulate business is based on

Accepted Answer

A)  court decisions. 
B)  regulations of administrative agencies. 
C)  statute law. 
D)  all of these. 
A)  court decisions. 
B)  regulations of administrative agencies. 
C)  statute law. 
D)  all of these.

Question 14

Government regulation of business can be achieved through

Accepted Answer

A)  income taxes. 
B)  sales taxes. 
C)  payroll taxes. 
D)  all of these. 
A)  income taxes. 
B)  sales taxes. 
C)  payroll taxes. 
D)  all of these.

Question 15

____________________ are government bodies created by Congress or a state legislature to act in the public interest.

Accepted Answer

Administra

Question 16

The most heavily regulated industry in the United States is the

Accepted Answer

A)  airline industry. 
B)  securities industry. 
C)  pharmaceutical industry. 
D)  television industry. 
A)  airline industry. 
B)  securities industry. 
C)  pharmaceutical industry. 
D)  television industry.

Question 17

Pauley owns and operates the only grocery store in a small town of about 500 residents. Has Pauley violated the antitrust laws by creating a monopoly?

Accepted Answer

No. Monopolies are created whe

Question 18

A(n) ____________________ is a person who benefits from private information received from a corporate insider.

Accepted Answer

The answer of A(n) ____________________ is a person who benefits...

Question 19

Government regulation protects the rights of

Accepted Answer

A)  consumers. 
B)  employees. 
C)  stockholders. 
D)  all of these. 
A)  consumers. 
B)  employees. 
C)  stockholders. 
D)  all of these.

Question 20

An example of an administrative agency at the local level would be

Accepted Answer

A)  a professional licensing board. 
B)  a zoning board. 
C)  a public utility commission. 
D)  none of these. 
A)  a professional licensing board. 
B)  a zoning board. 
C)  a public utility commission. 
D)  none of these.

Exam 28: Government Regulation of Business

Price fixing among businesses is legal as long as it results in lower costs.

A government regulation, to be valid, must be

Price discrimination is

An example of an illegal monopoly is

The most important law passed by Congress to prevent monopolies is called the

The administrative body that regulates the sale of securities is the ____________________.

Independent regulatory agencies are created by ____________________.

Sunday laws, while legal, are gradually being repealed or ignored.

Congressional power to protect the environment arises from Congress's constitutional power to

Administrative agencies exist at federal, state, and local levels.

The purpose of licensing laws is

Congress has almost unlimited power to control business activity.

The authority of government to regulate business is based on

Government regulation of business can be achieved through

____________________ are government bodies created by Congress or a state legislature to act in the public interest.

The most heavily regulated industry in the United States is the

Pauley owns and operates the only grocery store in a small town of about 500 residents. Has Pauley violated the antitrust laws by creating a monopoly?

A(n) ____________________ is a person who benefits from private information received from a corporate insider.

Government regulation protects the rights of

An example of an administrative agency at the local level would be

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Transfer of Title and Risk of Loss

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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