Question 1

The agency that deals with issues of "unfair and deceptive acts or practices in commerce" is the

Accepted Answer

A) Federal Trade Commission. 
B) Federal Products Commission. 
C) Federal Consumer Protection Agency. 
D) Federal Advertising Commission. 
A) Federal Trade Commission. 
B) Federal Products Commission. 
C) Federal Consumer Protection Agency. 
D) Federal Advertising Commission.

Question 2

-Cost-of-service regulation allows regulated companies to charge prices that

Accepted Answer

A) reflect the cost of regulating the industry, plus the marginal cost of the product. 
B) allow monopoly profits to the producer. 
C) reflect the actual average cost of providing the services to the customer. 
D) are determined by competition in other geographic markets. 
A) reflect the cost of regulating the industry, plus the marginal cost of the product. 
B) allow monopoly profits to the producer. 
C) reflect the actual average cost of providing the services to the customer. 
D) are determined by competition in other geographic markets.

Question 3

One organization in the United States today that is exempt from antitrust laws is

Accepted Answer

A) the automobile industry. 
B) professional baseball. 
C) the oil industry. 
D) the steel industry. 
A) the automobile industry. 
B) professional baseball. 
C) the oil industry. 
D) the steel industry.

Question 4

The theory of regulatory behavior that suggests that regulators must consider the demands of legislators, consumers, and members of the regulated agency is called

Accepted Answer

A) the capture theory. 
B) share-the-gains, share-the-pains theory. 
C) the natural theory. 
D) the creative theory. 
A) the capture theory. 
B) share-the-gains, share-the-pains theory. 
C) the natural theory. 
D) the creative theory.

Question 5

The primary purpose of economic regulation of an industry is to

Accepted Answer

A) control the prices charged by the regulated industry. 
B) increase taxes across the board. 
C) reduce output. 
D) control hiring and firing within the industry. 
A) control the prices charged by the regulated industry. 
B) increase taxes across the board. 
C) reduce output. 
D) control hiring and firing within the industry.

Question 6

The U.S. Justice Department prosecuted Microsoft under the terms of

Accepted Answer

A) the Sherman Act. 
B) the Kefauver amendment. 
C) the 1933 amendment to the Federal Trade Commission Act. 
D) none of the above. 
A) the Sherman Act. 
B) the Kefauver amendment. 
C) the 1933 amendment to the Federal Trade Commission Act. 
D) none of the above.

Question 7

The type of regulation that attempts to keep prices and the rate of return in an industry at a competitive level is referred to as

Accepted Answer

A) cost-of-service regulation. 
B) rate-of-return regulation. 
C) service-opportunity regulation. 
D) natural regulation. 
A) cost-of-service regulation. 
B) rate-of-return regulation. 
C) service-opportunity regulation. 
D) natural regulation.

Question 8

A difference between economic regulation and social regulation is that

Accepted Answer

A) the former tends to affect the prices at which products are sold and the latter does not. 
B) the former tends to affect the profits of firms and the latter does not. 
C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. 
D) the former tends to be done at the state level and the latter at the federal level. 
A) the former tends to affect the prices at which products are sold and the latter does not. 
B) the former tends to affect the profits of firms and the latter does not. 
C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. 
D) the former tends to be done at the state level and the latter at the federal level.

Question 9

Which of the following statements about natural monopoly is correct?

Accepted Answer

A) Governments regulate natural monopolies in order to ensure that costs of production are minimized. 
B) Governments regulate natural monopolies in order to ensure that the firm earns a normal profit. 
C) Governments regulate natural monopolies in order to prevent them from making profits. 
D) Governments regulate natural monopolies in order to keep their workers from earning wages that are too high. 
A) Governments regulate natural monopolies in order to ensure that costs of production are minimized. 
B) Governments regulate natural monopolies in order to ensure that the firm earns a normal profit. 
C) Governments regulate natural monopolies in order to prevent them from making profits. 
D) Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.

The agency that deals with issues of "unfair and deceptive acts or practices in commerce" is the

-Cost-of-service regulation allows regulated companies to charge prices that

One organization in the United States today that is exempt from antitrust laws is

The theory of regulatory behavior that suggests that regulators must consider the demands of legislators, consumers, and members of the regulated agency is called

The primary purpose of economic regulation of an industry is to

The U.S. Justice Department prosecuted Microsoft under the terms of

The type of regulation that attempts to keep prices and the rate of return in an industry at a competitive level is referred to as

A difference between economic regulation and social regulation is that

Which of the following statements about natural monopoly is correct?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 27: Regulation and Antitrust Policy in a Globalized Economy

The agency that deals with issues of "unfair and deceptive acts or practices in commerce" is the

-Cost-of-service regulation allows regulated companies to charge prices that

One organization in the United States today that is exempt from antitrust laws is

The theory of regulatory behavior that suggests that regulators must consider the demands of legislators, consumers, and members of the regulated agency is called

The primary purpose of economic regulation of an industry is to

The U.S. Justice Department prosecuted Microsoft under the terms of

The type of regulation that attempts to keep prices and the rate of return in an industry at a competitive level is referred to as

A difference between economic regulation and social regulation is that

Which of the following statements about natural monopoly is correct?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters