Chapter 8B

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

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

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

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

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
d. specifying standards of safety and health in industry

which of the following statements is true of licensure?
a. it is lauded for having benefits that exceed its costs in increased prices
b. it is issued to increase services and decrease administrative expenses
c. it is criticized as being designed to block the entry of competitors
d. it is used by the federal government to intervene in business

which of the following was the first federal regulatory agency that Congress established in 1887 for the purpose of regulating railroad routes and rates?
a. the Federal Trade Commission
b. the Interstate Commerce Commission
c. the Environmental Protection Agency
d. the Food and Drug Administration

Which of the following statements is true of independent federal agencies?
a. they are usually the departments of the government's executive branch
b. they are created via statutes labeled enabling legislation
c. they are not vested with substantial legislation so as to prevent autonomy
d. they are created to delegate a portion of their authority to Congress

Identify the correct statement about a federal agency.
a. an independent federal agency is usually located within the departments of the government's executive branch
b. in rule-making situation, a federal agency avoids using the hybrid process.
c. in creating a federal agency, Congress delegates a portion of its authority to that body
d. a federal agency does not have substantial authority to regulate a specified segment of American life

which of the following served as the basis for the creation of a fourth branch of government by Congress?
a. agency commissioners are appointed in staggered terms, typically of three years' duration
b. agencies must delegate a portion of their authority to congress as they recognize that they are not the appropriate bodies to address the specific elements of certain problems
c. the appointment of agency commissioners is done by the Senate with the advice of the president
d. the appointment of agency commission for most of the independent agencies must reflect an approximate political balance between the two major parties

the primary purpose of most of the early agencies was to address:
a. economic concerns
b. discrimination issues
c. environmental concerns
d. product safety issues

which of the following statements is true of federal agencies?
a. federal agencies typically appointment commissioners for a life term
b. federal agencies avoid using the hybrid rule-making system
c. the president has direct authority over the executive federal agencies
d. the independent federal agencies are usually located within the departments of the executive branch of the government

the _________ was enacted to provide a framework for agency rule-making and to detail broad standards for judicial review of agency decisions.
a. Public Records Act
b. Political Reform Act
c. Administrative Procedure Act
d. Uniform Adoption Act

Which of the following is an example of the federal regulatory authority of control of information?
a. preventing the entry of certain products into the market
b. directing that warning labels be stuck on products
c. uniform pricing of cable TV services
d. banking of a flame retardant used in children's nightwear

CartMed Inc., an over-the-counter (OTC) drug manufacturer, is directed by the Office of National Drug Control Policy (ONDCP) to refrain from manufacturing cough syrups that exceed 22 percent alcohol content for children below the age of ten. This authority of the ONDCP falls under which of the following federal regulatory categories?
a. Control of information
b. Control of rates
c. Control of standards
d. Control of cost

Identify the type of rules that offer an administrative agency's view of the meaning of those statutes for which the agency has administrative responsibility
a. Interpretative rules
b. legislative rules
c. procedural rules
d. substantive rules

Which of the following statements is true of executive functions of federal agencies?
a. they always offer formal advice in response to requests
b. they are empowered to resolve tax disputes
c. they do not deal with the compliance with laws and regulations
d. they hear workers' compensation claims but cannot resolve them

Which of the following is an example of an executive function performed by a federal agency?
a. Leasing federal lands
b. Enacting procedural rules
c. Regulating internal revenue service
d. Publishing all federal rules and orders daily

Which of the following statements relates to procedural rules?
a. they define rights and duties, such as crimes and punishments, and civil rights and responsibilities
b. they impose new duties on affected parties and have the effect of law
c. they delineate a federal agency's internal operating structure and methods
d. they offer a federal agency's view of the meaning of those statutes for which the agency has administrative responsibility

Federal Trade Commission rules providing for a cooling-off period of three business days within which the buyer may cancel door-to-door sales contracts are an example of an agency's application of its _____ rules.
a. procedural
b. interpretive
c. legislative
d. substantive

Internal Revenue Service regulations are an example of _______ rules
a. substantive
b. interpretative
c. legislative
d. procedural

Which of the following statements is true of rule-making by agencies?
a. the agencies create rules that resemble laws but do not have the force of laws
b. the federal government provides an online portal where the public can comment on proposed rules
c. legislative rules delineate the agency's internal operating structure and methods
d. procedural rules are policy expressions having the effect of law

Which of the following statements is true of judicial review of agency rules?
a. review of controversial, high visibility rules issued by agencies is not common
b. courts take a broad approach to judicial review of such cases
c. Courts cannot overrule the agencies' interpretation of a rule
d. judges readily sustain the judgment of the agency where reasonable

which of the following statements is true of the Federal Communications Commission's (FCC) indecent rules?
a. FCC rules increase the prices of cable TV services that broadcast indecent material
b. FCC rules forbid indecent material on conventional broadcast services when children are likely to be in the audience.
c. FCC rules forbid indecent material on cable networks between 6pm and 10am
d. FCC rules apply to subscription services such as programming delivered via satellite

A(n) ______ is an economics argument claiming that an individual or business that is protected from risk will increase its risk-taking behavior in the future in the belief that bailout will follow, if needed
a. unjust enrichment
b. unconscionable contract
c. wrongful discharge
d. moral hazard

since the late 1970s, the United States has been in a period of deregulation during which:
a. federal agencies were newly created to undertake legislative functions of the government
b. administrative agencies acted as governments, performing purely executive, legislative, and judicial roles
c. federal powers were separated from the powers of the states
d. great efforts were made to reduce the role of government in big portions of American life