Exam: 02.08 Government Regulation

In which market type is it most efficient to allow one producer to exist and for government to work with that producer?

Natural monopoly

Officials want to reduce the possibility of oil leaks into bodies of freshwater drinking sources. Therefore, the government insists that oil refineries undergo monthly inspections. For what reason would the government regulate monthly inspections at oil refineries?

Protect the public from pollution

Which statement describes a surplus in a market?

Quantity demanded is lower than quantity supplied.

What are the goals of government regulation?

low unemployment, price stability, economic growth

Which type of professional would help the government determine where to set the price of oranges for U.S. markets?

Economists

Which of these is an example of a natural monopoly?

Electricity service

Assume the government sets a price ceiling, or maximum price, of $800 rent per month. Based on the graph, what will be the outcome of this price ceiling?

There will be a rental housing shortage.

Which statement identifies a reason a federal minimum wage was first established?

Workers needed fair compensation for their labor.