Question 1

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 2

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

Accepted Answer

Economic regulation focuses on ensuring fair competition and preventing monopolies, often through setting prices and controlling output. Social regulation, on the other hand, focuses on protecting public health, safety, and welfare, often through regulations on environmental or labor practices. While both types of regulation can impact quality of life, social regulation specifically aims to improve it, while economic regulation is primarily concerned with market efficiency.

Question 3

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.

Question 4

The two basic types of government regulation are

Accepted Answer

Economic regulation focuses on regulating industries and sectors to promote competition, while social regulation focuses on promoting public welfare and quality of life. Therefore, the two basic types of government regulation are economic and social regulation. Monopoly regulation, health and safety regulation, and financial regulation are all subsets of economic or social regulation.

Question 5

Since 1970, federal expenditures by regulatory agencies have

Accepted Answer

Federal expenditures by regulatory agencies have increased dramatically since 1970. The number of regulatory agencies has increased, and the regulations they enforce have become more complex, leading to higher costs.

Question 6

All of the following are regulatory agencies EXCEPT

Accepted Answer

The National Rifle Association is not a regulatory agency; it is a lobbying group that advocates for Second Amendment rights. The other options listed are all government agencies responsible for regulating certain industries or aspects of society.

Question 7

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 is specifically tasked with investigating complaints of discrimination based on race, religion, sex, or age in all aspects of employment. The other agencies listed are focused on different areas such as environmental protection or regulating food and drugs.

Question 8

Which of the following is concerned with social regulation?

Accepted Answer

The Food and Drug Administration (FDA) is responsible for regulating and supervising the safety of food, drugs, and medical devices in the United States. This falls under the category of social regulation, which aims to protect the health and safety of individuals in society. The other options listed - the Federal Reserve Board, the Sherman Commission, and the Board of Education - are not primarily concerned with social regulation, and instead focus on monetary policy, antitrust laws, and education policy, respectively.

Question 9

Social regulation is focused on all of the following EXCEPT

Accepted Answer

Ensuring costs are minimized and benefits are maximized is not a focus of social regulation. Rather, social regulation is focused on protecting the environment, improving working conditions, and promoting a better quality of life for society as a whole.

Question 10

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 specifically tasked with protecting consumers from products that could potentially cause harm, including fire, electrical, chemical or mechanical hazards, and dangers to children, such as choking hazards. The other agencies listed have different focuses and responsibilities.

Question 11

An agency that regulates product markets is the

Accepted Answer

The Federal Trade Commission (FTC) is an agency that regulates product markets. Its primary responsibility is to ensure that businesses operate fairly and without engaging in anticompetitive practices, such as false advertising or price-fixing. The FTC is also responsible for protecting consumers from fraudulent or deceptive practices by businesses. The other options listed are regulatory agencies, but they focus on specific areas such as workplace safety (OSHA), environmental protection (EPA), or equal opportunity in employment (EEOC).

Question 12

All of the following are forms of social regulation EXCEPT

Accepted Answer

Social regulation refers to government intervention in the operation of the market system to promote a desired social outcome or to correct a perceived market failure. The regulation of telephone service prices falls under economic regulation rather than social regulation, as it primarily deals with the pricing and competition among businesses in a market rather than broader social concerns such as public health or safety. A, C, and D all involve government intervention to protect public health, safety, or the environment, and are examples of social regulation.

Question 13

This agency regulates workplace safety and health conditions.

Accepted Answer

The Occupational Safety and Health Administration (OSHA) is the agency responsible for regulating workplace safety and health conditions, including setting and enforcing safety standards, conducting inspections, and providing training and outreach to employers and workers. The other options are not primarily focused on workplace safety and health.

Question 14

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 refers to government-imposed rules and standards aimed at protecting people's health, safety, and the environment. The Food and Drug Administration and the Environmental Protection Agency are two of the several government agencies that are responsible for enforcing social regulation. Therefore, the best choice is D.

Question 15

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

Accepted Answer

OSHA (Occupational Safety and Health Administration) is the federal regulatory agency responsible for ensuring workplace health and safety standards are met. The AFL-CIO (American Federation of Labor and Congress of Industrial Organizations) is a federation of labor unions, not a regulatory agency. The FTC (Federal Trade Commission) is responsible for promoting consumer protection and preventing anticompetitive business practices. The SEC (Securities and Exchange Commission) is responsible for regulating and overseeing the securities industry.

Question 16

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 agency responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as protecting consumer rights is the Federal Trade Commission (FTC). The Environmental Protection Agency (EPA) oversees environmental protection regulations, the Food and Drug Administration (FDA) regulates food and drug safety, and the Equal Employment Opportunity Commission (EEOC) enforces laws related to workplace discrimination.

Question 17

An agency that regulates labor markets is the

Accepted Answer

The Equal Employment Opportunity Commission is responsible for enforcing laws that prohibit discrimination in the workplace based on race, color, religion, sex, national origin, age, and disability. This makes it the most relevant agency that regulates labor markets. The Environmental Protection Agency deals with environmental regulation, the Federal Trade Commission focuses on consumer protection, and the Consumer Product Safety Commission regulates the safety of consumer products.

Question 18

The two basic types of government regulation are

Accepted Answer

The two basic types of government regulation are economic and social regulation. Economic regulation refers to government intervention in the economy to regulate economic activities, such as monopolies, pricing, and market competition. Social regulation, on the other hand, refers to government intervention in the economy to ensure public safety, health, and environmental protection. Examples of social regulation include workplace safety regulations, environmental regulations, and consumer protection laws.

Question 19

The major goal of social regulation is

Accepted Answer

Social regulation aims to improve the quality of life by ensuring a safer environment, better working conditions, and safer products. This is done to protect the public interest and the well-being of individuals. Option B and C are related to economic regulation, which aims to control the behavior of firms to maintain market competition and protect consumers from excessive market power. Option D is related to using incentives and taxes to encourage firms to produce at the socially optimal point.

Question 20

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 for air, water, toxic waste, and noise. The Consumer Product Safety Commission (B) is responsible for ensuring the safety of consumer products, the Equal Employment Opportunity Commission (C) is responsible for enforcing laws that prohibit workplace discrimination, and the Occupational Safety and Health Administration (D) is responsible for enforcing workplace safety and health regulations.

Quiz 27: Regulation and Antitrust Policy in a Globalized Economy

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

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

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

The two basic types of government regulation are

Since 1970, federal expenditures by regulatory agencies have

All of the following are regulatory agencies EXCEPT

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.

Which of the following is concerned with social regulation?

Social regulation is focused on all of the following EXCEPT

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

An agency that regulates product markets is the

All of the following are forms of social regulation EXCEPT

This agency regulates workplace safety and health conditions.

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

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

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.

An agency that regulates labor markets is the

The two basic types of government regulation are

The major goal of social regulation is

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