E OBJ 2.03 MC

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

• Acting as a referee

• Ensuring a business’s profitability

• Protecting the environment

• Regulating technology

Government is involved in settling business disagreements through the use of

• courts.

• fines.

• negotiation.

• force.

Why does government set and collect taxes?

• To help businesses grow and prosper

• To provide economic security

• 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

• people’s attitudes have changed.

• products have become very technical.

• costs of production have continued to increase.

• competition in the marketplace has increased.

Government has become an active participant in the world of business.

• True; government produces goods and services.

• True; government helps to start monopolies.

• False; government works with businesses only.

• False; government doesn’t produce any products.

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 the best products.

• make a profit.

• provide a safe working environment.

When government sets safety standards for the workplace, it is attempting to

• control business.

• minimize risks to employees.

• prohibit excess standards.

• modernize working environment.

The two main sources of revenue used to pay the costs of government regulation are

• taxes and borrowing.

• government and industry.

• taxpayers and nontaxpayers.

• business and labor.