Question 1

All of the following are regulatory agencies EXCEPT

Accepted Answer

The National Rifle Association is not a regulatory agency. It is a nonprofit organization that advocates for gun rights and gun ownership. The other options listed are all regulatory agencies that are responsible for enforcing laws and regulations related to their specific areas.

Question 2

Since 1970, federal expenditures by regulatory agencies have

Accepted Answer

According to the information given, federal expenditures by regulatory agencies have increased dramatically since 1970.

Question 3

An agency that regulates product markets is the

Accepted Answer

The Federal Trade Commission (FTC) is responsible for regulating product markets in the US. They work to prevent unfair and deceptive practices, protect consumers from fraud, and ensure competition in the marketplace. The other options listed regulate employment practices (EEOC), environmental impact (EPA), and workplace safety (OSHA).

Question 4

The purpose of social regulation is

Accepted Answer

Social regulation is designed to ensure that firms not only comply with safety and environmental regulations but also take into account the social impact of their activities. This involves assessing the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods. It does not directly control prices or force a firm to produce at a specific output level.

Question 5

This agency is responsible for protecting consumers from products posing fire, electrical, chemical, or mechanical hazards or dangers to children.

Accepted Answer

The Consumer Product Safety Commission is responsible for protecting consumers from products posing fire, electrical, chemical, or mechanical hazards or dangers to children. The Environmental Protection Agency is responsible for protecting the environment and public health, the Equal Employment Opportunity Commission enforces laws against workplace discrimination, and the Occupational Safety and Health Administration is responsible for ensuring safe and healthy working conditions for employees.

Question 6

Which of the statements best describes the difference between economic regulation and social regulation?

Accepted Answer

Economic regulation primarily focuses on regulating prices and output in industries such as utilities, while social regulation focuses on improving the quality of life and safety in areas like the environment and consumer protection. Therefore, option B correctly describes the difference between economic and social regulation. Option A is incorrect as there are significant differences between the two forms of regulation. Option C is incorrect as the focus of economic regulation is price and output, not quality of life. Option D is incorrect as it represents an oversimplification of the regulation targets of economic regulation.

Question 7

This agency is responsible for regulating the quality and safety of foods, health and medical products, pharmaceuticals, cosmetics, and animal feed.

Accepted Answer

The Food and Drug Administration (FDA) is responsible for regulating the quality and safety of foods, health and medical products, pharmaceuticals, cosmetics, and animal feed. The other options listed do not have jurisdiction over these areas.

Question 8

The major goal of social regulation is

Accepted Answer

The major goal of social regulation is to improve the quality of life for individuals by ensuring a less polluted environment, better working conditions, and the availability of safer and better products. This is done to ensure that individuals are not adversely affected by the actions of businesses or other entities. While the other options also play a role in social regulation, A is the main goal.

Question 9

This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights.

Accepted Answer

The Federal Trade Commission is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights. The Environmental Protection Agency is responsible for protecting human health and the environment, the Food and Drug Administration regulates food, drugs, and medical devices, and the Equal Employment Opportunity Commission enforces federal laws that prohibit employment discrimination.

Question 10

Which of the following is concerned with social regulation?

Accepted Answer

The Food and Drug Administration (FDA) is concerned with social regulation as it oversees the safety and efficacy of food, drugs, and medical devices to protect public health. The Federal Reserve Board, Sherman Commission, and Board of Education do not have a primary focus on social regulation.

Question 11

A difference between economic regulation and social regulation is that

Accepted Answer

Economic regulations tend to be industry-specific, such as setting price ceilings or floors on certain products, whereas social regulations are more general and can affect firms in any industry, such as regulations related to environmental protection or workplace safety. Options A, B, and D are incorrect as they do not reflect a fundamental difference between economic and social regulations.

Question 12

All of the following are forms of social regulation EXCEPT

Accepted Answer

B is not a form of social regulation because it is an example of economic regulation. Social regulation refers to government regulation that applies to the health, safety, and morals of citizens, while economic regulation refers to government regulation that affects the structure, conduct, and performance of a specific industry, such as setting prices or controlling entry into the market. A, C, and D are all examples of social regulation because they each address a specific area of public health or safety.

Question 13

The two basic types of government regulation are

Accepted Answer

The two basic types of government regulation are economic and social regulation. Economic regulations are concerned with controlling prices, entry, and exit of firms, and other market actions that affect the distribution of goods and services. Social regulations are concerned with promoting public welfare, such as health, safety, and environmental protection. Both types of regulations can operate at the federal and state levels.

Question 14

This agency regulates workplace safety and health conditions.

Accepted Answer

The Occupational Safety and Health Administration (OSHA) regulates workplace safety and health conditions, ensuring that employers provide a safe and healthy work environment for their employees. OSHA sets standards for workplace safety and can issue citations and penalties for violations.

Question 15

This agency develops and enforces environmental standards for air, water, toxic waste, and noise.

Accepted Answer

The Environmental Protection Agency (EPA) is responsible for developing and enforcing environmental standards related to air, water, toxic waste, and noise. This includes monitoring and regulating emissions from industrial and transportation sources, managing hazardous waste disposal, and ensuring clean air and water for communities.

Question 16

The federal regulatory agency whose mission is to regulate workplace health and safety is the

Accepted Answer

The Occupational Safety and Health Administration (OSHA) is the federal regulatory agency responsible for ensuring safe and healthy working conditions in the workplace. This includes setting and enforcing safety standards, providing training and education, and conducting inspections to ensure compliance with regulations. The other options, AFL-CIO, FTC, and SEC, have different missions and do not focus specifically on workplace health and safety. AFL-CIO is a labor federation, FTC focuses on consumer protection and competition, and SEC regulates the securities market.

Question 17

While economic regulation applies to ________ industries, social regulation applies to ________ firms.

Accepted Answer

Economic regulation is specific to particular industries, such as utilities or banking, where the government controls prices, entry, and exit. Social regulation, on the other hand, applies to all firms across various industries and focuses on issues like workplace safety, environmental protection, and equal employment opportunity.

Question 18

This agency is responsible for investigating complaints of discrimination based on race, religion, sex or age in hiring, promotion, firing, wages, testing, and all other conditions of employment.

Accepted Answer

The Equal Employment Opportunity Commission (EEOC) is specifically responsible for investigating complaints of discrimination in the workplace based on race, religion, sex, or age. The other agencies listed (Environmental Protection Agency, Food and Drug Administration, and Federal Trade Commission) have different areas of responsibility and do not handle employment discrimination complaints.

Question 19

Regulation imposed by such organizations as the Food and Drug Administration or the Environmental Protection Agency seeking to protect the welfare of people in our nation is referred to as

Accepted Answer

Social regulation is the regulation imposed by government agencies such as the FDA and EPA on businesses and industries in order to protect the welfare of people in our nation. This type of regulation aims to promote public safety, health, and environmental protection through the enforcement of laws and regulations.

Question 20

An agency that regulates labor markets is the

Accepted Answer

The Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that prohibit discrimination against a job applicant or employee based on race, color, religion, sex, national origin, age, disability, or genetic information. The EEOC also works to prevent and remedy discrimination in the workplace. As labor market regulations often involve issues of discrimination and equal opportunity, the EEOC would be the most relevant agency to regulate labor markets.

Quiz 27: Regulation and Antitrust Policy in a Globalized Economy