7.3 Role of Gov Market

Open Ended

List and explain the 3 different types of price discrimination

Open Ended

1. 1. What is the purpose of the CFPB? 

2. 2. Who is the only person that can fire the director of the CFPB? 

3. 3. How many US banks have gone out of business since the passage of the Dodd-Frank Law in 2010? 1,

4. 4. How are small businesses and individuals impacted when banks close?

Multiple Choice

What was the primary purpose of the Sherman Antitrust Act of 1890?

• To establish a federal banking system

• To protect trade and commerce against unlawful restraint and monopoly

• To promote trust among various corporations

• To deregulate the stock market

Multiple Choice

Which company was sued under the Sherman Antitrust Act and subsequently divided into multiple companies?

• General Motors

• Standard Oil

• Microsoft

• AT&T

Multiple Choice

What are trusts defined as in the context of early competition laws?

• Agreements to share patents among companies

• Legal mergers approved by the government

• Illegal combinations of corporations organized to suppress competition

• Government-sanctioned monopolies

Dropdown

What was the primary purpose of the Clayton Antitrust Act of 1914?

Select answer

Multiple Choice

What does the term "price discrimination" refer to in the context of the Clayton Antitrust Act?

• The practice of charging the same price to all customers

• The practice of charging different customers different prices for the same product

• The practice of increasing prices without justification

• The practice of decreasing prices to eliminate competition

Drag and Drop

Which act gave the Federal Trade Commission the authority to issue cease and desist orders?

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Sherman Act

Federal Trade Commission Act of 1914

Clayton Antitrust Act of 1914

Consumer Protection Act

Multiple Choice

What is the purpose of cease and desist orders as described in the Federal Trade Commission Act?

• To promote price discrimination

• To encourage monopolistic practices

• To stop unfair business practices that reduce or limit competition

• To deregulate the market

Drag and Drop

Which of the following is NOT typically regulated as a monopoly by local and state governments?

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Cable television

Water utilities

Electric utilities

Internet service providers

Multiple Choice

Which statement is true about monopolies?

• All monopolies are considered harmful to the economy and are illegal.

• Monopolies are always regulated by the federal government only.

• Not all monopolies are bad and some are beneficial due to economies of scale.

• Monopolies do not exist in modern economic systems.

Dropdown

What is the purpose of public disclosure in markets?

Select answer

Multiple Choice

Which example illustrates public disclosure?

• A company sharing its financial results only with its employees

• A grocery store displaying the ingredients of a food product

• A business keeping its operational strategies confidential

• A company advertising without listing product details

Drag and Drop

What was the primary reason for the creation of the Consumer Financial Protection Bureau?

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To increase the number of home mortgages

Provide oversight/guidance for financial lending

To reduce the interest rates on loans

To promote real estate businesses

Multiple Choice

What does the term "mortgage" refer to?

• A type of personal loan

• A legal document that pledges ownership of a home to a lender as security for repayment of borrowed money

• A government policy on housing

• A financial statement required for loan approval

Multiple Choice

What is foreclosure?

• The process of evaluating a home's value

• The act of selling a home

• The process in which a lender reclaims the property due to a lack of payment by the borrower

• The initial offering of a home for sale

Multiple Choice

What is the primary role of the Federal Reserve System (FRS)?

• Regulates consumer protection for mortgages and credit cards

• Supervises transmission of various forms of energy

• Manages the money supply and regulates some banking activities

• Regulates civilian use of nuclear waste materials

Drag and Drop

Which agency is responsible for insuring bank deposits?

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Securities and Exchange Commission (SEC)

Federal Deposit Insurance Corporation (FDIC)

Consumer Financial Protection Bureau (CFPB)

Federal Energy Regulatory Commission (FERC)

Dropdown

What does the Consumer Financial Protection Bureau (CFPB) regulate?

Select answer