US 404 Midterm Exam Study Guide 100% Correct Answers Verified 2024 Version
0 view 0 purchase
Course
TOP VERIFIED
Institution
TOP VERIFIED
True or False:
The government intervenes to thwart anticompetitive behaviors throughout the marketplace. - True
True or False:
A natural monopoly exists where a single large firm, such as utility, is more efficient than several small
ones. - True
True or False:
When all the costs and benefits...
BUS 404 Midterm Exam Study Guide | 100%
Correct Answers | Verified 2024 Version
True or False:
The government intervenes to thwart anticompetitive behaviors throughout the marketplace. - ✔✔True
True or False:
A natural monopoly exists where a single large firm, such as utility, is more efficient than several small
ones. - ✔✔True
True or False:
When all the costs and benefits of a good or service are fully internalized or absorbed by producers or
consumers, those costs or benefits fall elsewhere as externalities. - ✔✔False
True or False:
Negative Externalities are those in which a decision maker does not receive the full benefit of a decision.
- ✔✔False
True or False:
The Supremacy Clause of the U.S. Constitution broadly specifies the power accorded to the federal
government to regulate business activity. - ✔✔False
True or False:
Optimal efficiency often demands one uniform federal rule rather than a patchwork of state rules. -
✔✔True
True or False:
The U.S. Constitution does not expressly forbid state regulation of interstate commerce. - ✔✔True
True or False:
,Police power refers to the right of the state governments to promote the public health, safety, morals,
and general welfare. - ✔✔True
True or False:
Purely intrastate activities can be regulated by the federal government if they have a substantial effect
on interstate commerce. - ✔✔True
True or False:
The Commerce Clause, as interpreted by the judiciary, affords private companies exclusive discretion
over foreign commerce. - ✔✔False
True or False:
In the event of an irreconcilable conflict between federal and state law, the Supremacy Clause provides
that federal law will be preempt state or local law rendering it unconstitutional. - ✔✔True
True or False:
States cannot regulate insurance as this is solely a federal responsibility. - ✔✔False
True or False:
Local government intervention in business typically involves various licensure requirements. - ✔✔True
True or False:
Administrative law principles are generally applicable to the conduct of state and local governments. -
✔✔True
True or False:
Agency commissioners are appointed typically for a life term. - ✔✔False
True or False:
,Administrative agencies act as pseudo governments, performing purely executive, legislative, and judicial
roles. - ✔✔False
True or False:
Adjudication ordinarily involves standards to be applied to the future conduct of a class of unspecified
parties. - ✔✔False
True or False:
Congress controls agency budgets and thus can encourage or discourage particular agency action. -
✔✔True
True or False:
Federal agency rules and orders cannot be challenged in court. - ✔✔False
Which of the following would most likely be considered a negative externality for a manufacturing firm?
A. Internal disagreements among the firm's employees
B. Unfavorable public opinion about the firm's problems
C. Air and water pollution as a result of the firm's manufacturing processes
D. Government regulations detrimental to the firm's manufacturing activities - ✔✔C. Air and water
pollution as a result of the firm's manufacturing activities
When all the costs and benefits of a good or service are not fully internalized or absorbed, those costs or
benefits fall elsewhere as what economists have labeled ______
A. public goods
B. neighborhood effects
C. commoditization
D. imperfect information - ✔✔B. neighborhood effects
Today, attention in the monopoly area is largely directed to:
A. preventing negative externalities
, B. curbing anticompetitive conduct
C. controlling the formation of cartels
D. regulating open competition - ✔✔B. curbing anticompetitive conduct
Which of the following statements is true of public goods?
A. The added cost of benefitting one person is zero or nearly so.
B. There are methods for excluding those who choose not to pay for public goods.
C. They will be produced in adequate quantities in the absence of government regulations.
D. They can be provided to consumers through a pricing system - ✔✔A. The added cost of benefitting
one person is zero or nearly so
Which of the following acts forbids the use, cultivation, or possession of marijuana for any purpose?
A. The Harrison Narcotics Tax Act
B. The Controlled Substances Act
C. The Food, Drug, and Cosmetic Act
D. The Pure Food and Drug Act - ✔✔B. The Controlled Substances Act
Which of the following ended Prohibition in 1933 and gave the states broad authority to regulate the
sale of alcohol?
A. The Twenty-First Amendment
B. The Commerce Clause
C. The Fifth Amendment
D. The Supremacy Clause - ✔✔A. The Twenty-First Amendment
Which of the following is an example of the federal government exceeding its authority in regulating
commerce?
A. Regulating railroad routes and rates
B. Prohibiting indecent materials on regular broadcast television between 6am and 10pm
C. Forcing most Americans to maintain "minimum essential" health insurance
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller hussle. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
