TJ_Comp 20_TB_Ch05

TJ_Comp 20_TB_Ch05 - Chapter 5GOVERNMENT REGULATION OF...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5—GOVERNMENT REGULATION OF COMPETITION AND PRICES TRUE/FALSE 1. The federal government may regulate business. ANS: T MSC: AACSB Analytic 2. State governments may regulate business in all of its aspects, even if such regulation imposes a burden on interstate commerce. ANS: F MSC: AACSB Analytic 3. The federal government may impose upon any phase of business any regulation that is required by "the economic needs of the nation." ANS: T MSC: AACSB Analytic 4. The government may prohibit false advertising and labeling, but may not establish standards for mundane things like cosmetics because they pose no danger to the public. ANS: F MSC: AACSB Analytic 5. The federal government may regulate all methods of intrastate transportation and communication. ANS: F MSC: AACSB Analytic 6. The government may validly require licenses for professionals, but not for those persons dealing in goods. ANS: T MSC: AACSB Analytic 7. Governments may own factories and may compete with privately owned businesses. ANS: T MSC: AACSB Analytic 8. Providing assistance for businesses that would not otherwise prove attractive to private investors is an example of regulation of production. ANS: T MSC: AACSB Analytic 9. The Federal Trade Commission administers the law prohibiting unfair methods of competition. ANS: T MSC: AACSB Analytic 10. In regard to unfair methods of competition, a shift has taken place which gives emphasis to the effect on the consumer rather than looking only to the negative effect on competitors. ANS: T MSC: AACSB Analytic 11. The government may regulate production but not prices.
Background image of page 1

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

View Full DocumentRight Arrow Icon
ANS: F MSC: AACSB Analytic 12. The Clayton Act prohibits price discrimination between different buyers of like commodities when the effect may be to substantially lessen competition. ANS: T MSC: AACSB Analytic 13. A manufacturer with distributors in New York City may give its newer distributors free advertising and other services to help them compete with the distributors who have been doing business for a num- ber of years and have become firmly established. ANS: F MSC: AACSB Analytic 14. A state may prohibit a seller from selling below cost if the purpose is to harm competitors. ANS: T MSC: AACSB Analytic 15. A price reduction to one customer is lawful when it is made because of the deteriorated condition of the goods sold to that customer. ANS: T MSC: AACSB Analytic 16. The Robinson-Patman Act of 1936 guarantees a seller the right to refuse to deal with anyone for any reason or purpose. ANS: F MSC: AACSB Analytic 17. It is a federal offense for a manufacturer to require a distributor to maintain a specified price on re- selling to retailers. ANS: T
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

TJ_Comp 20_TB_Ch05 - Chapter 5GOVERNMENT REGULATION OF...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online