Business EC-016

Which of the following was one of government’s original roles in business:

• Ensuring a business’s profitability

• Acting as a referee

• Protecting the environment

• Regulating technology

One way in which government protects private property is to provide

• fire insurance policies.

• Federal Reserve Banks.

• local governmental programs.

• patents or copyrights.

Government is involved in settling business disagreements through the use of

• fines

• force

• negotiation.

• courts

Why does government set and collect taxes?

• To provide economic security

• To help businesses grow and prosper

• To increase the use of technology

• To help pay the expenses of government

One of the reasons that has caused government’s role in business to expand is that

• competition in the marketplace has increased

• costs of production have continued to increase

• products have become very technical

• people’s attitudes have changed

What is the purpose of government regulation of business activities that might cause air or water pollution?

• To stabilize the economy

• To conserve the environment

• To protect competition

• To provide public goods

Determine whether the following statement is true or false: Government has become an active participant in the world of business.

• True; government produces goods and services.

• False; government doesn’t produce any products

• False; government works with businesses only

• True; government helps to start monopolies

The goals of government are to protect the rights of individuals and businesses and to provide a stable environment, but the main goal of business is to

• save the environment

• provide a safe working environment.

• provide the best products

• make a profit

Which of the following is a public good that is provided by government:

• New automobiles

• Interstate highways

• Marketing research

• Private schools

Government uses some of the tax money it collects from individuals and businesses to support public welfare programs. What is the benefit of these welfare programs to businesses in a private enterprise economy?

• Businesses must budget more money for taxes

• Funds received by recipients are spent in businesses

• Recipients don’t have to work

• Government has control of how the recipients spend their money