RC#5: U.S. Economy Part 2

The federal government would investigate this company's practices in order to -

• preserve competition

• conserve resources

• protect worker's rights

• safeguard international trade

Which action represents a way the federal government can promote business competition?

• Publishing polluters

• Regulating investors

• Enforcing tariffs

• Prohibiting monopolies

The United Sates government encourages marketplace competition by -

• supporting new businesses

• developing monopolies

• taxing imports

• limiting economic growth

Why is a monopoly bad for an economy?

• It promotes trade

• It lowers production costs

• It eliminates competition

• It lowers consumer prices

Government enforces antitrust legislation to discourage -

• foreign competition

• business expansion

• global trade

• monopolies

This tag, found in a shirt, is the result of a federal law to protect consumers. Which of the following would most likely enforce this law?

• Federal Communication Commission (FCC)

• Environmental Protection Agency (EPA)

• Federal Trade Commission (FTC)

• International Revenue Service (IRS)

International trade benefits Virginia companies by -

• reducing competition

• increasing prices

• expanding markets

• reducing specialization

Florida specializes in the production of oranges to -

• promote efficiency and growth

• control inflation

• gain a monopoly

• reduce tariffs

Virginia and the United States pursue international trade in order to -

• increase wealth

• create monopolies

• increase the cost of production

• decrease supply and demand

What does a bank do with most of the deposits it takes in?

• Keeps the money safe in its vault

• Keeps the money safe by depositing it at a Federal Reserve Bank

• Uses the money to buy stocks in corporations

• Lends the money to qualified borrowers