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Bus 404 Midterm Exam/157 Questions and Verified Answers
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Bus 404 Midterm Exam/157 Questions and Verified Answers
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Bus 404 Midterm Exam/157Questions and Verified Answers
True or False:
The government intervenes to thwart anticompetitive behaviors throughout
the marketplace. - -True
-True or False:
A natural monopoly exists where a single large firm, such as utility, is more
efficient than several small ones. - -True
-True or False:
When all the costs and benefits of a good or service are fully internalized or
absorbed by producers or consumers, those costs or benefits fall elsewhere
as externalities. - -False
-True or False:
Negative Externalities are those in which a decision maker does not receive
the full benefit of a decision. - -False
-True or False:
The Supremacy Clause of the U.S. Constitution broadly specifies the power
accorded to the federal government to regulate business activity. - -False
-True or False:
Optimal efficiency often demands one uniform federal rule rather than a
patchwork of state rules. - -True
-True or False:
The U.S. Constitution does not expressly forbid state regulation of interstate
commerce. - -True
-True or False:
Police power refers to the right of the state governments to promote the
public health, safety, morals, and general welfare. - -True
-True or False:
Purely intrastate activities can be regulated by the federal government if
they have a substantial effect on interstate commerce. - -True
-True or False:
The Commerce Clause, as interpreted by the judiciary, affords private
companies exclusive discretion over foreign commerce. - -False
, -True or False:
In the event of an irreconcilable conflict between federal and state law, the
Supremacy Clause provides that federal law will be preempt state or local
law rendering it unconstitutional. - -True
-True or False:
States cannot regulate insurance as this is solely a federal responsibility. - -
False
-True or False:
Local government intervention in business typically involves various
licensure requirements. - -True
-True or False:
Administrative law principles are generally applicable to the conduct of state
and local governments. - -True
-True or False:
Agency commissioners are appointed typically for a life term. - -False
-True or False:
Administrative agencies act as pseudo governments, performing purely
executive, legislative, and judicial roles. - -False
-True or False:
Adjudication ordinarily involves standards to be applied to the future conduct
of a class of unspecified parties. - -False
-True or False:
Congress controls agency budgets and thus can encourage or discourage
particular agency action. - -True
-True or False:
Federal agency rules and orders cannot be challenged in court. - -False
-Which of the following would most likely be considered a negative
externality for a manufacturing firm?
A. Internal disagreements among the firm's employees
B. Unfavorable public opinion about the firm's problems
C. Air and water pollution as a result of the firm's manufacturing processes
D. Government regulations detrimental to the firm's manufacturing activities
- -C. Air and water pollution as a result of the firm's manufacturing activities
-When all the costs and benefits of a good or service are not fully
internalized or absorbed, those costs or benefits fall elsewhere as what
economists have labeled ______
, A. public goods
B. neighborhood effects
C. commoditization
D. imperfect information - -B. neighborhood effects
-Today, attention in the monopoly area is largely directed to:
A. preventing negative externalities
B. curbing anticompetitive conduct
C. controlling the formation of cartels
D. regulating open competition - -B. curbing anticompetitive conduct
-Which of the following statements is true of public goods?
A. The added cost of benefitting one person is zero or nearly so.
B. There are methods for excluding those who choose not to pay for public
goods.
C. They will be produced in adequate quantities in the absence of
government regulations.
D. They can be provided to consumers through a pricing system - -A. The
added cost of benefitting one person is zero or nearly so
-Which of the following acts forbids the use, cultivation, or possession of
marijuana for any purpose?
A. The Harrison Narcotics Tax Act
B. The Controlled Substances Act
C. The Food, Drug, and Cosmetic Act
D. The Pure Food and Drug Act - -B. The Controlled Substances Act
-Which of the following ended Prohibition in 1933 and gave the states broad
authority to regulate the sale of alcohol?
A. The Twenty-First Amendment
B. The Commerce Clause
C. The Fifth Amendment
D. The Supremacy Clause - -A. The Twenty-First Amendment
-Which of the following is an example of the federal government exceeding
its authority in regulating commerce?
A. Regulating railroad routes and rates
B. Prohibiting indecent materials on regular broadcast television between
6am and 10pm
C. Forcing most Americans to maintain "minimum essential" health insurance
D. Specifying standards of safety and health in industry - -C. Forcing most
Americans to maintain "minimum essential" health insurance
-Which of the following statements is true of licensure?
A. It is lauded for having benefits that exceed its costs in increased prices
B. It is issued to increase services and decrease administrative expenses
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