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Worksheets

Regulate and Protect

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

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

a)

Regulating technology

b)

Acting as a referee

c)

Ensuring a business's profitability

d)

Protecting the environment

2.

One way in which government protects private property is to provide

a)

Federal Reserve Banks.

b)

local governmental programs.

c)

patents or copyrights.

d)

fire insurance policies.

3.

Government is involved in settling business disagreements through the use of

a)

force.

b)

negotiation.

c)

fines.

d)

courts.

4.

Why does government set and collect taxes?

a)

To increase the use of technology

b)

To help pay the expenses of government

c)

To provide economic security

d)

To help businesses grow and prosper

5.

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

a)

people's attitudes have changed.

b)

products have become very technical.

c)

costs o production have continued to increase.

d)

competition in the marketplace has increased.

6.

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

water pollution?

a)

To protect competition

b)

To provide public goods

c)

To stabilize the economy

d)

To conserve the environment

7.

Determine whether the following statement is true or false: Government has become an active participant in the world of business.

a)

True; government helps start monopolies.

b)

True; government produces goods and services.

c)

False; government works with businesses only.

d)

False; government doesn't produce any products.

8.

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

a)

make a profit.

b)

save the environment.

c)

provide the best products.

d)

provide a safe working environment.

9.

Which of the following is a public good that is provided by government:

a)

Private schools

b)

Marketing research

c)

New automobiles

d)

Interstate highways

10.

Government uses some of the tax money it collects from individuals and businesses to support public welfare programs. What is the benefit of these welfare programs to businesses in a private enterprise economy?

a)

Recipients don't have to work.

b)

Businesses must budget more money for taxes.

c)

Funds received by recipients are spent in businesses.

d)

Government has control of how the recipients spend their money.

11.

Which of the following government actions is most likely to stimulate the economy:

a)

Lowering tax rates

b)

Rising the prime interest rate

c)

Printing less money

d)

Borrowing more money

12.

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

a)

Industrializing the economy

b)

Encouraging the production of wheat

c)

Using price supports

d)

Encouraging energy conservation

13.

Government tries to protect competition by

a)

controlling the prices of products

b)

restricting the production of certain products

c)

regulating monopolies

d)

preventing all monopolies

14.

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

a)

control business.

b)

minimize risk to employees.

c)

prohibit excess standards.

d)

modernize working environments.

15.

Government provides protection to business owners’ property through the use of

a)

zoning laws.

b)

minimum-wage laws

c)

safety standards.

d)

consumer-protections laws.

16.

Which of the following regulatory agencies would be concerned with price fixing and unfair competitive practices:

a)

National Labor Relations Board

b)

Consumer Product Safety Comission

c)

Federal Communications Commission

d)

Federal Trade Commission

17.

Government can prevent unqualified persons from operating a business by

a)

helping their competitors.

b)

closing their bank accounts.

c)

raising their taxes.

d)

refusing to grant them a license.

18.

A restaurant fails to meet government regulations, so it loses its __________ and is no longer allowed to do business.

a)

license

b)

price controls

c)

tariffs

d)

disposable income

19.

Which of the following is a positive effect of government regulation:

a)

Price controls

b)

Legal protection

c)

Unfair competition

d)

Increased inflation

20.

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

a)

business and labor.

b)

taxpayers and non-taxpayers.

c)

government and industry.

d)

taxes and borrowing.