Chapter 7 Quiz

Deregulation is often:

A politically popular idea

Which of these cost-savings measures saved U.S. regulatory agencies nearly $2 billion since 2011?

All of the above.

Antitrust laws protect consumers from:

Anticompetitive practices by business.

Managers' understanding of government regulations is:

Both a domestic and international issue.

Which of the following represents a structural remedy for an antitrust violation?

Breaking up a monopoly.

Past decisions of the courts, the original basis for the U.S. legal system, are called:

Common laws

Economic regulations:

Cut across industry lines.

When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called:

Economic sanctions

Which of the following are examples of natural monopolies?

Electric utilities and railroads.

An example of a regulatory agency charged with enforcing social regulation is:

Federal Trade Commission

Governments hold the power to:

Grant or refuse permission for many types of business activity.

When the market fails to adjust for the full costs of a firm's behavior, this is called:

Market failure

Policies that affect the supply, demand, and value of a nation's currency are:

Monetary policies.

Which of the following is not an example of a social regulatory agency?

National Labor Relations Board.

The primary way of accomplishing public policy is through:

Regulation.

Total social regulation costs are:

Significantly higher than total economic regulation costs.

Around the world, government:

Sometimes cooperates and sometimes is in conflict with business

Cooperation between business and government often occurs when:

They encounter a common problem or enemy.

Regulation can be argued as justified based on:

Utilitarian and justice grounds

Economists reported that the costs of regulatory compliance were highest for:

Worker safety.