MGMT 325 - Ch 7 Quiz

The Mullahs in Iran is an example of the power of government derived from:

A religious authority.

Antitrust laws protect consumers from:

Anticompetitive practices by business.

The antitrust enforcement agencies in the United States have the legal authority to:

Block anticompetitive mergers in the U.S.

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

Breaking up a monopoly.

Which of the following are examples of natural monopolies?

Electric utilities and railroads.

(T/F) Government and business together establish the regulatory rules under which business operates in society.

False

(T/F) In Europe, unions are prohibited by law to be on businesses' administrative boards.

False

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

Federal Trade Commission.

Public policy tools involve a combination of:

Incentives and penalties.

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

Monetary policies.

An example of an economic regulatory agency is:

National Labor Relations Board.

Government regulations help balance negative externalities such as:

No smoking rules enforced to mitigate the effects of second-hand smoke.

Economic regulations are illustrated by which action?

Preventing anticompetitive business practices.

Total social regulation costs are:

Significantly higher than total economic regulation costs.

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank:

The following answers are correct: -Influences the size of the nation's money supply -Influences the value of the dollar.

(T/F) Cost-benefit analysis is often used to determine the costs of regulation.

True

(T/F) In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.

True

(T/F) New improved mining equipment that was found to increase cases of black lung disease because it generated higher levels of dust in the mines is an example of negative externalities.

True

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.

(T/F) Predatory pricing is a violation of antitrust laws.

True

(T/F) Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries.

True

Government's role is to create and enforce laws that:

Balance the relationship between business and society.

Patterns of government taxing and spending that are intended to stimulate or support the economy are:

Fiscal policies.