Ch 8A

The interstate commerce commission was the first federal regulatory agency that Congress established in 1887 for the purpose of A) regulating railroad routes and rates B) regulating interstate commerce C) regulating intrastate commerce D) regulating the burgeoning agriculture market

A. Regulating railroad routes and rates

The use, cultivation, or possession of marijuana for any purpose is forbidden by which of the following acts? A) The Controlled Substances Act B) The Cannabis Control ACt C) The Food and Drug Act D) The Angel Raich Act

A. The controlled substances act

Economists have labeled ________ as those costs or benefits of a good or service that fall elsewhere and are not fully internalized or absorbed A) neighborhood effects B) monopolies C) market effects D) market failure

A. neighborhood effects

Which of the following would most likely be considered a positive externality in court? A) The benefits that remain within the business B) Favorable public opinion about the firm's products C) Benefits from a business's decision that spill over to third parties D) A pro-business regulation that decreases the requirements on the private sector

C. Benefits from a business's decision that spill over to third party

Which of the following is an example of the federal government exceeding its authority in regulating commerce? A. Regulating railroad routes and rates B. Prohibiting indecent materials on regular broadcast television between 6 am and 10 pm C. Forcing most Americans to maintain "minimum essential" health insurance D. Specifying standards of safety and health industry

C. Forcing most Americans to maintain "minimum essential" health insurance

Identify the correct statement about a federal agency A. All federal agencies were created to be under the direct control of the president. B. In a rule-making situation, a federal agency uses independent written comments to establish its regulations. C. In creating a federal agency, Congress delegates a portion of its authority to that body D. Federal agencies have the authority to control the production of certain economic activities.

C. In creating a federal agency, Congress delegates a portion of its authority to that body.

All of the following statements are true of licensure except which of the following? A) It is alleged that increased prices and decreased services result from licensure. B) It is intended to safeguard the public from unsafe and substandard goods and services. C) It is used by the federal government to intervene in business D) It is criticized as being designed to block the entry of competitors.

C. It is used by the federal government to intervene in business

Today, attention in the monopoly area is largely directed to: A) controlling the formation of foreign cartels that seek to interfere with interstate commerce B) encouraging positive externalities C) preventing activities that undercut the virtues of the free market D) encouraging negative externalities

C. Preventing activities that undercut the virtues of the free market

Which of the following ended the Prohibition in 1933 and gave the states broad authority to regulate the sale of alcohol? A) The Fifth Amendment B) The Eighteenth Amendment C) The Twenty-First Amendment D) The Fourteenth Amendment

C. The twenty first amendment

Which of the following statements is true of independent federal agencies? A. They are usually the departments of the government's executive branch. B. They are not vested with substantial legislation so as to prevent autonomy. C. They are created via statutes labeled enabling legislation D. They are created to delegate a portion of their authority to Congress

C. They are created via statues labeled enabling legislation

Which of the following served as the basis for the creation of a fourth branch of government by Congress? A) Agency commissioners are appointed to life terms which relieves them from political pressure B) The executive agencies are needed to protect the public welfare C) The use of enabling legislation allows Congress to cede all control to the agency D) Congress does not have the expertise to handle certain issues.

D. Congress does not have the expertise to handle certain issues

Public goods include which of the following? A) Those goods that can be provided to all consumers through a free market unencumbered by anticompetitive behavior B) Those goods that can be excluded from people who choose not to pay for them C) Those goods that can be produced in adequate quantities to benefit the general welfare of the public D) Those goods for which the added cost of benefiting one person is zero or nearly so

D. Those goods which the added cost of benefiting one person is zero or nearly so.

Adhering to free market principals, the government is reluctant to thwart anticompetitive behaviors in the marketplace

false

Adjudication ordinarily involves standards to be applied to the future conduct of a class of unspecified parties.

false

Federal agency rules and orders cannot be challenged in court

false

Local government intervention in business may only involve taxes

false

States cannot regulate the insurance industry as it is solely a federal responsibility

false

The U.S. Constitution expressly forbids state regulation of interstate commerce

false

The federal government may regulate only interstate commerce regardless of the effect that purely intrastate commerce may have on interstate commerce.

false

The government will not intervene to thwart anticompetitive behaviors throughout the marketplace

false

The president controls agency budgets and thus has tremendous power to encourage or discourage particular agency action.

false

Administrative agencies act as mini governments, preforming quasi executive, legislative, and judiciary roles

true

Administrative law principals are generally applicable to the conduct of state and local governments

true

Agency commissioners are appointed in staggered terms

true

Congress has the exclusive discretion over foreign commerce according to the judiciary's interpretation of the Commerce Clause.

true

In the event of an irreconcilable conflict between federal state law, the Supremacy Clause provides that federal law will preempt state or local law rendering it unconstitutional.

true

Optimal efficiency often demands one uniform federal rule rather than a patchwork of 50 state rules.

true

The Commerce Clause of the U.S. Constitution broadly specifies the power accorded to the federal government to regulate business activity

true

The right of the state governments to promote public health, safety, morals, and general welfare is known as police power.

true

When a business does not realize all of the benefits of its decision, this situation is known as a positive externality

true

When all the costs and benefits of a good or service are not fully internalized or absorbed by producers or consumers, those costs or benefits fall elsewhere as externalities

true