Ans b pts 1 dif easy nat busprog analytic sta disc

ANS: B PTS: 1 DIF: Easy NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
125. The airline and trucking industries came under regulation during the:
a. 1920s. c. 1960s.

b. 1930s. d. 1970s.
ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
126. The federal agency established in 1934 to regulate telephones and broadcasting industries is the:
a. Interstate Commerce Commission (ICC).
b. Federal Trade Commission (FTC).
c. Securities and Exchange Commission (SEC).
d. Equal Employment Opportunity Commission (EEOC).
e. Federal Communications Commission (FCC).
ANS: E PTS: 1 DIF: Easy NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
127. The Consumer Product Safety Commission (CPSC) was established in:
a. 1887. c. 1934.
b. 1931. d. 1972.
ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
128. During the first phase of regulation in the United States (from 1887 to the Great Depression), the
primary target of regulation was the:
a. labor unions. c. food and drug industries.
b. communication industry. d. railroads.
ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Comprehension
129. Deregulation, especially for the transportation and telecommunication industries, was the trend in the
United States during the:
a. 1930s. c. 1970s.
b. 1950s. d. 1980s.
ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
130. In the United States, regulation increased steadily in the areas of health, safety, and the environment
during:
a. the Great Depression. c. the 1970s.
b. World War II. d. the 1980s.
ANS: C PTS: 1 DIF: Easy NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
131. Which of the following involved deregulation?
a. Airline Deregulation Act of 1978. c. Motor Carrier Act of 1982.
b. Staggers Rail Act of 1980. d. All of these.
ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Knowledge
132. The Civil Aeronautics Board (CAB) was:
a. established in 1934 and reorganized in 1984.
b. established in 1938 and eliminated in 1984.

c. established in 1938 and reorganized in 1991.
d. never a regulatory agency.
ANS: B PTS: 1 DIF: Challenging NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Regulation KEY: Bloom's: Comprehension
133. Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:
a. the first unit produced. c. the last unit produced.
b. each unit produced. d. the profit-maximization unit.
ANS: C PTS: 1 DIF: Challenging NAT: BUSPROG: Analytic
STA: DISC: The role of government TOP: Three Cases for Government Regulation
KEY: Bloom's: Comprehension
134. Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal
to the intersection of the demand curve and the:
a. marginal revenue curve. c. marginal cost curve.