logo image

APEX Econ 5.3: The Government Is a Referee

Why does the government need to regulate the free market to protect competition?
Producers driven by the profit motive seek to reduce their competition
Which of these gives companies an anticompetitive impulse?
The profit motive
What is one effect of the profit motive?
It pushes companies to seek to eliminate competition
What is a cartel?
A group of producers working together to raise prices and profits
Which of these is a group of producers working together to raise prices and increase profits?
A cartel
What unfair business practice do cartels use?
Price fixing
Match each unfair business practice with an example of its use.
A. Predatory pricing
B. Making misleading statements
C. Price fixing
A. A large furniture maker charges a price below production cost in order to eliminate small competitors
B. A coffee maker falsely claims that its drinks reduce the incidence of heart attacks
C. A group of music companies agrees to charge $20 for CDs
Match each action with the unfair business practice it represents.
A. Bid rigging
B. Production Limitation
C. Price fixing
A. A defense contractor gets its competitors to agree not to enter bids
B. A cartel of sugar growers agrees to reduce the amount of sugar it brings to market
C. A group of oil companies agrees to charge $3 for a gallon of gas
Match each type of unfair business practice with its description.
A. Vendor Lock-in
B. Price fixing
C. Predatory pricing
A. A company says that a wide range of products can be used with its product, which is not actually true
B. A group of companies agrees to charge the same inflated price for a good
C. A large company charges a price below production cost in order to eliminate small competitors
What is one benefit of consumer-protection regulations?
A reduction in injuries and deaths
What is one benefit of consumer-protection regulations?
Greater consumer confidence
What is one drawback to consumer-protection regulations?
Higher prices for consumers
What do consumer-advocacy groups do?
Promote the interest of consumers
What is one way that consumer-advocacy groups help protect consumers?
By providing product information
What is the purpose of consumer-advocacy groups?
To promote the interest of consumers
What does enforcing consumer-protection regulations involve?
Government oversight of the production process
What does the government have to do to enforce consumer-protection regulations?
Oversee production
What is one thing the government does as it enforces consumer-protection regulations?
Tests products such as drugs and automobiles for safety
Match each company or organization with the correct label.
A. Organization of Petroleum Exporting Countries (OPEC)
B. Lockheed Martin Corporation
C. Antitrust Division of the Department of Justice
A. Cartel
B. Government contractor
C. Competition regulator
Match each company, organization, or agency with the correct label.
A. Consumer Reports
B. Food and Drug Administration (FDA)
C. Federal Trade Commission (FTC)
A. Consumer advocacy publication
B. Consumer protection agency
C. Competition regulation
Match each company or organization with the correct label.
A. Boeing Corporation
B. Federal Aviation Administration (FAA)
C. Federal Trade Commission (FTC)
A. Government contractor
B. Consumer-protection agency
C. Competition regulator
What happens to the expenses involved in compliance with government regulations?
Passed on to the consumer
Who ultimately pays for compliance with government regulations?
Consumers
What is done with the costs of complying with consumer-protection regulations?
Eventually passed on to consumers in the form of higher prices
Which of these enables the government to make up for a budget deficit?
The bond market
In order to make up for a budget deficit, the government can do what?
Issue bonds
When the government runs a budget deficit, what must it eventually do in order to pay back its debt?
Have a budget surplus
How do antitrust laws affect the circular flow of the free-market system?
They speed up the flow of capital and wages
What effect do consumer-protection regulations have on the circular flow of the free-market system?
They inspire consumer confidence, which leads to increased purchases from producers
Which of these inspires consumer confidence, increases purchases, and speeds up the flow of investment and wages in the circular flow of the free- market system?
Consumer-protection regulations

Need essay sample on "APEX Econ 5.3: The Government Is a Referee"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy