9. Federal Regulation of Business

9. Federal Regulation of Business - 9 Federal Regulation of...

Info icon This preview shows pages 1–2. Sign up to view the full content.

9. Federal Regulation of Business Two reasons for government regulation of the private sector: 1) Flaws in the market mechanism 2) Social and political reasons Flaws in the market mechanism 0. Natural monopoly 0. one firm can supply a product cheaper than anyone else 1. local public utilities 1. Natural-resource depletion 2. to safeguard future supplies 3. oil, water 2. Destructive competition 4. dominating companies may engage in unfair or destructive competition 5. price fixing 3. Externalities 6. costs of production born by society 7. cleaning up pollution 8. industrial safety 9. health hazards 4. Inadequate information 10. includes information about warranties, contents, disclosure of financial info to investors Social, Political, and Other Reasons 5. Socially desirable goods and services 11. provide things that would not be produced otherwise 12. clean air, clean water, toxic waste disposal 6. Protecting individual rights and privacy 13. has always been a cause of the federal government 14. safe working conditions 15. investor protection from fraud 16. regulation of health care 7. Resolution of national and global problems 17. response to problems that can’t be solved by state or local governments 18. regulation of railroads, banks, pollution food, discrimination 19. correct unfair trade practices in foreign countries 8. Regulation to benefit special groups 20. special interest groups always pressure congress 21. as diverse as steel manufacturers to farmers to the disabled 9. Conservation of resources 22. agricultural lands 23. forests, lakes, mountains 24. endangered species The Legal basis for Government Regulation of Business 10.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '09
  • Ritchey
  • Business, Monopoly, New Deal, Federal Aviation Administration, Independent agencies of the United States government, federal regulation, Federal Energy Regulatory Commission

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern