5.6 Regulatory Policy Answers

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Which statement explains how regulations on prices affect business practices?

R
Regulations keep prices fair and prevent businesses from establishing monopolies.
R
Regulations keep prices low and help businesses to establish monopolies.
R
Regulations keep prices fair and help businesses to establish monopolies.
R
Regulations keep prices low and prevent businesses from establishing monopolies.
3

Which are results of regulation in a mixed-market economy? Check all that apply.

A
compliance with laws
B
advantages for producers
C
control of markets
D
advantages for government
E
control of externalities
4

A purpose of government regulation in a mixed-market economy is to protect

A
property rights.
B
corporate rights.
C
monetary rights.
D
states' rights.
6

risklawsmonopoliessafety

A
risk
B
laws
C
monopolies
D
safety
7

Government regulation is intended to

A
encourage producers to take negative actions.
B
discourage producers from taking harmful actions.
C
encourage producers to follow the Constitution.
D
discourage producers from making a profit.
8

A goal of financial regulatory agencies is to

A
prevent monopolies.
B
enforce workplace safety.
C
protect the environment.
D
enforce food safety.
9

What makes enforcing safety standards a challenge for the Food and Drug Administration?

A
Many foods are imported from other countries, and the FDA must ensure those foods meet the same standards as US goods.
B
The FDA faces competition from the EPA, which sets standards for product labeling.
C
The FDA has no control over advertising laws, which may conflict with safety standard laws.
D
Many raw materials are exported to other countries, and the FDA must ensure those materials meet the same standards as international goods.
10

In which situation would government regulation most likely be necessary?

A
A factory requires employees to work in unsafe conditions.
B
A restaurant requires employees to work overtime on weekends.
C
A computer company requires employees to work long hours.
D
A power plant requires employees to take safety training classes.
11

revealregulateprotectconceal

A
reveal
B
regulate
C
protect
D
conceal
12

The Food and Drug Administration sets standards for

A
advertising.
B
product labeling.
C
the environment.
D
traffic safety.
13

A goal of financial regulatory agencies is to

A
prevent monopolies.
B
enforce workplace safety.
C
protect the environment.
D
enforce food safety.
14

Which are results of regulation in a mixed-market economy? Check all that apply.

A
compliance with laws
B
advantages for producers
C
control of markets
D
advantages for government
E
control of externalities
15

Regulatory policy requires a balance between protecting safety and

A
protecting constitutional rights.
B
improving corporate profits.
C
improving environmental conditions.
D
protecting states’ rights.
16

Regulatory policy requires a balance between protecting safety and

A
protecting constitutional rights.
B
improving corporate profits.
C
improving environmental conditions.
D
protecting states’ rights.
17

A regulatory agency that protects workers is

A
OSHA.
B
EPA.
C
FDA.
D
SEC.
18

Which is a function of regulatory agencies?

e
encouraging business compliance
c
creating legislation for businesses
e
encouraging negative externalities
c
creating new business opportunities
20

Which are duties of OSHA? Check all that apply.investigating worker complaintsinspecting imported foodinspecting businesseslabeling productsprotecting the environment

A
investigating worker complaints
B
inspecting imported food
C
inspecting businesses
D
labeling products
E
protecting the environment

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