Financial Planning I Unit 4 Test

Which regulatory agency would be concerned with price fixing and unfair competitive prices?

• Consumer Product Safety Commission

• Federal Communications Commission

• National Labor Relations Board

• Federal Trade Commission

Providing compensation to the unemployed and aid to dependent children are ways that the government intervenes in the economy to:

• manage yearly spending

• protect private property

• improve public welfare

• set safety standards

Which is a public good that is provided by government?

• interstate highways

• marketing research

• new automobiles

• private schools

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

• taxpayers and nontaxpayers

• government and industry

• taxes and borrowing

• business and labor

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

• local government programs

• Federal Reserve Banks

• Fire Insurance Policies

• Patents or copyrights

:

One of the positive effects that government

regulation has on companies is that many of the laws are intended to provide companies with:

• choices

• obstacies

• protections

• restrictions

The government can prevent unqualified persons from operating a business by:

• refusting to grant them a license

• closing their bank accounts

• helping their copetitors

• assessing extra taxes

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

• costs of production have continued to increase

• competition in the marketplace has increased

• products have become very technical

• peoples attitudes have changed

As the size and power of U.S. businesses

have grown over time, the federal government's involvement in the U.S. economy has:

• increased

• decreased

• stayed the same

• become unimportant

When the government buys wheat to keep the price high enough for farmers to make a profit, it is:

• encouraging the production of wheat

• encouraging energy conservation

• industrializing the economy

• using price supports