The Role of Government

Who is Henry Bessemer?

english inventor and engineer who developed the first process for manufacturing steel inexpensively

What is the advantage to the public of truth-in-advertising laws?

helps prevent sellers from making false claims about their products

What are two market failures the government is able to correct?

inadequate information and public goods

what was the antitrust legislation of the late 1800s trying to restrict?

monopolies and trusts

What government actions led to a modification of free enterprise?

public utilities, new food and drug law protected people from false claims and harmful products

What are two examples of needed public goods that are provided by the government?

reliable transportation, good roads, public schools, and more

What is the purpose of public disclosure?

the requirement that business reveal information to the public

What was the purpose of the Clayton Antitrust Act of 1914 and what practice did it outlaw?

to give the government more power against monopolies and outlawed price discrimination

What was the purpose of the Sherman Antitrust Act?

to protect trade and commerce against unlawful restraint and monopoly

Under what conditions are monopolies acceptable?

to set the same level of price and service that could exist under competition

What is one example of how local or state government allows and regulates a monopoly?

If a company wants to raise rates it must argue and prove its case before comission