Worksheets2.02 Regulate and Protect Test
Total questions: 19
Worksheet time: 10mins
Name
Class
Date
1.
Which of the following was one of government’s original roles in business:
a)
Regulating technology
b)
ensuring a business’s profitability
c)
Acting as a referee
d)
Protecting the environment
2.
One way in which government protects private property is to provide
a)
Federal Reserve Banks.
b)
patents or copyrights.
c)
local governmental programs.
d)
fire insurance policies.
3.
Government is involved in settling business disagreements through the use of
a)
force.
b)
fines.
c)
negotiation.
d)
courts.
4.
Why does the 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 change
b)
products have become very technical.
c)
costs of production have continued to increase.
d)
competition in the marketplace has increase
6.
What is the purpose of government regulation of business activities that might cause air or
water pollution?
a)
To protect competition
b)
To stabilize the economy
c)
To provide public goods
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.
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)
provide the best products.
c)
save the environment.
d)
provide a safe working environment.
9.
Which of the following is a public good that is provided by government
a)
Private schools
b)
New automobiles
c)
Marketing research
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)
Printing less money
c)
Raising the prime interest rate
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)
Using price supports
c)
Encouraging the production of wheat
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)
prohibit excess standards.
c)
minimize risks to employees.
d)
modernize working environments.
15.
Government provides protection to business owners’ property through the use of
a)
zoning laws.
b)
safety standards.
c)
minimum-wage laws.
d)
consumer-protection laws.
16.
Which of the following regulatory agencies would be concerned with price fixing and unfair competitive practices:
a)
National Labor Relations Board
b)
Federal Communications Commission
c)
Consumer Product Safety Commission
d)
Federal Trade Commission
17.
Government can prevent unqualified persons from operating a business by
a)
helping their competitors.
b)
raising their taxes.
c)
closing their bank accounts.
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)
tariffs
c)
price controls
d)
disposable income
19.
.Which of the following is a positive effect of government regulation:
a)
Price controls
b)
Unfair competition
c)
Legal protection
d)
Increased inflation
100 %
