EI 2.02 Quiz Part 1

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

• Acting as a referee

• Regulating technology

One way in which government protects private property is to provide

• fire insurance policies. 

• patents or copyrights.

Government is involved in settling business disagreements through the use of

• courts

• fines

Why does the government set and collect taxes?

• 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.

• costs of production have continued to increase.

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

• To protect competition

• To conserve the environment

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.

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

• provide a safe working environment. 

• make a profit.