How Governments Can Affect Business Plenary 1

Which two of the following would help a company which produces petrol for use in cars?

• investment into the road transport infrastructure

• reduced rates of corporation tax

• higher levels of environmental regulation

• increased rates of duty on petrol

Which two of the following would protect consumers from exploitation by businesses?

• creation of a new power supply system for a city

• legislation about labelling the ingredients of food

• higher levels of VAT on products

• legislation preventing anti-competitive practices

Which of the following is an example of government action to ensure fair treatment of consumers?

• Allowing monopolies to set their own prices

• Reducing import tariffs

• Introducing laws requiring clear pricing on products

• Subsidizing large corporations

What is the main purpose of consumer protection laws?

• To increase business profits

• To prevent consumers from making choices

• To safeguard consumers from unfair business practices

• To reduce competition in the market

Which of the following would NOT be considered a measure to protect consumers?

• Mandatory safety standards for products

• Regulations against false advertising

• Allowing misleading product labels

• Setting up consumer complaint agencies

Which of the following best describes a consumer's right under consumer protection laws?

• The right to be misled by advertisements

• The right to access accurate product information

• The right to pay higher prices

• The right to ignore product safety warnings

What is one way the government can help ensure product safety for consumers?

• By removing all regulations on businesses

• By enforcing product recall procedures

• By allowing false claims in advertisements

• By discouraging consumer complaints

Which action would most likely violate consumer protection laws?

• Ensuring fair return policies

• Selling products with hidden defects

• Offering a customer support hotline

• Providing clear and accurate product labels