Question 1 (1 point) The two basic types of government regulation are Question 1
ID: 1227789 • Letter: Q
Question
Question 1 (1 point)
The two basic types of government regulation are
Question 1 options:
regulation of natural monopolies and regulation of cartels.
social regulation and labor law.
economic regulation and industry regulation.
social regulation and economic regulation.
Select subject(so we can find the right Chegg Expert)
Question 2 (1 point)
The major goal of social regulation is
Question 2 options:
to make sure that the firm produces at the socially optimal point of production.
a better quality of life through a less polluted environment, better working conditions, and safer and better products.
to make sure that prices are kept low enough so that every person can purchase the good.
to make sure that firms are not earning monopoly profits.
Question 3 (1 point)
Financial markets are regulated by
Question 3 options:
the Stock and Bond Exchange Commission.
the Security and Protection Commission.
the Stock and Exchange Commission.
the Securities and Exchange Commission.
Question 4 (1 point)
A natural monopoly exists when
Question 4 options:
increasing marginal returns and the ability to obtain quantity discounts from suppliers leads to a single-firm industry.
control of a key input leads to a single-firm industry.
the government restricts entry that leads to a single-firm industry.
economies of large-scale production are substantial, leading to a single-firm industry.
Question 5 (1 point)
Regulation that keeps the rate of return in the industry competitive is known as
Question 5 options:
rate-of-return regulation.
cost-of-service regulation.
deregulation.
social regulation.
Question 6 (1 point)
The cost of complying with regulation
Question 6 options:
increases the products' price elasticity of demand.
shifts the MC curve downward.
shifts the demand curve to the right.
shifts the ATC curve upward
Question 7 (1 point)
The total cost of federal regulation includes
Question 7 options:
only the cost of compliance by the regulated firms.
only the funding of the regulatory agencies.
the funding of government agencies overseeing compliance less the compliance cost for the regulated firms and the opportunity cost of regulation for the firms.
the funding of government agencies overseeing compliance, the compliance cost for the regulated firms, and the opportunity cost of regulation for the firms.
Question 8 (1 point)
The Federal Trade Commission was established in 1914 to
Question 8 options:
prevent non-price competition.
promote competition in interstate commerce.
investigate unfair competitive practices.
regulate trade of public goods.
Question 9 (1 point)
The Sherman Antitrust Act was passed to
Question 9 options:
prevent market price from equaling marginal cost.
protect the monopoly profits of firms.
control the growth of monopolies in the U.S.
protect companies from foreign competition.
Question 10 (1 point)
Antitrust laws in the United States
Question 10 options:
are the same as the laws in the European Union.
are not necessary in the twenty-first century.
have not been used in the past twenty-five years.
are an attempt to foster competition.
A.regulation of natural monopolies and regulation of cartels.
B.social regulation and labor law.
C.economic regulation and industry regulation.
D.social regulation and economic regulation.
Explanation / Answer
1. The two basic types of government regulation are economic and social regulation. The government imposes these regulations so that market remains unregulated and consumers are not hurt.
2. The major goal of social regulation is a better quality of life through a less polluted environment, better working conditions, and safer and better products.
3. The Securities and Exchange Commission regulates the financial market. It is an independent agency of the government.
4. A natural monopoly exists when economies of large-scale production are substantial, leading to a single-firm industry. The economies of scale ensure the existence of large monopoly firms.