CHAPTER 4—GOVERNMENT REGULATION OF BUSINESS
Key
1. Which of the following is true of government regulation of business?
2. Which of the following is true of administrative agencies?
3. The Federal Trade Commission and the Environmental Protection Agency are examples of _____ agencies.
4. Regulatory agencies can use the licensing power to:
5. The power of a regulatory agency to fix the prices that a business may charge is known as _____.
6. The purpose of antitrust laws is to:
7. Activities that are illegal regardless of their effect are known as _____.
8. Which of the following is true of The Water Pollution and Control Act?
9. The Resource Conservation and Recovery Act was enacted for:
10. ANZ Inc., a cement manufacturer, releases hazardous chemicals into the atmosphere and also into nearby
streams. The pollutants released into the atmosphere exceed acceptable levels and the company is facing a suit
from the residents of nearby towns. Under which of the following acts can the company be sued?
11. Administrative agencies cannot hire scientists and researchers to study industries on their own accord.
12. Regulatory agencies are also called social regulatory agencies.
13. Administrative agencies primarily set policy through the issuance of rules and regulations.
14. Generally, it is the activity itself, not its effect, which is the most important element in deciding whether the
Sherman Act has been violated.
15. Government regulates business by means of antitrust laws that seek to promote competition among
businesses.
16. Price fixing, group boycotts, and horizontal territorial restraints are known as anti-trust violations.
17. The Robinson–Patman Act prohibits sales at unreasonably low prices.
18. Private citizens are entitled to sue on the basis of the Water Pollution and Control Act.
19. The Resource Conservation and Recovery Act is responsible for preventing the illegal discharge of
pollutants into interstate and navigable waters.
20. Define regulatory and nonregulatory administrative agencies.