Government Regulation and Economic Development

Which of the following is an example of how the government promotes stable markets?

• Setting national regulations for things like automobile fuel efficiency standards.

• Providing direct subsidies to businesses to help them grow.

• Increasing inflation to encourage more consumer spending.

• Allowing individual states to set all their own rules for manufacturing.

How does the government promote economic prosperity?

• By allowing financial markets to operate without any rules or oversight.

• By investing in public infrastructure such as highways and the internet.

• By encouraging high inflation to make goods more expensive.

• By reducing funding for scientific research and development.

What is one way the government promotes business development?

• By eliminating all tariffs on imported goods, regardless of impact on domestic businesses.

• By providing direct assistance to businesses through programs like the Small Business Administration.

• By making it harder for domestic businesses to compete with foreign companies.

• By stopping all government investment in private firms and industries.

Which government agency ensures that medicines are not poisonous and inspects meat?

• The Environmental Protection Agency (EPA)

• The Federal Trade Commission (FTC)

• The Food and Drug Administration (FDA)

• The Occupational Safety and Health Administration (OSHA)

What was the main reason Congress passed the Interstate Commerce Act in 1887?

• To encourage the growth of new railroad companies.

• To prevent railroads from charging different prices to different shippers.

• To fund the construction of more transcontinental railroads.

• To establish safety standards for railroad travel.

The period in U.S. history from 1870 to 1900, known for "runaway capitalism" and the rise of powerful business leaders, is called the:

• Progressive Era

• New Deal Era

• Gilded Age

• Reconstruction Era

What major historical event led to the federal government taking a much more active role in regulating the economy, often referred to as the "administrative and regulatory state"?

• World War I

• The Great Depression

• The Civil War

• The Industrial Revolution