Law Business and Society, by Tony McAdams 12th Edition-Test Bank
Law, Business and Society, 12e (McAdams)
Chapter 8 Government Regulation of Business
1) The government will not intervene to thwart anticompetitive behaviors throughout the marketplace.
2) Adhering to free market principles, the government is reluctant to thwart anticompetitive behaviors in the marketplace.
3) When all the costs and benefits of a good or service are not fully internalized or absorbed by producers or consumers, those costs or benefits fall elsewhere as externalities.
4) When a business does not realize all of the benefits of its decision, this situation is known as a positive externality.
5) The Commerce Clause of the U.S. Constitution broadly specifies the power accorded to the federal government to regulate business activity.
6) Optimal efficiency often demands one uniform federal rule rather than a patchwork of 50 state rules.
7) The U.S. Constitution expressly forbids state regulation of interstate commerce.
8) The right of the state governments to promote the public health, safety, morals, and general welfare is known as police power.
9) The federal government may regulate only interstate commerce regardless of the effect that purely intrastate commerce may have on interstate commerce.
10) Congress has the exclusive discretion over foreign commerce according to the judiciary’s interpretation of the Commerce Clause.
11) In the event of an irreconcilable conflict between federal and state law, the Supremacy Clause provides that federal law will preempt state or local law rendering it unconstitutional.
12) States cannot regulate the insurance industry as it is solely a federal responsibility.
13) Local government intervention in business may only involve taxes.
14) Administrative law principles are generally applicable to the conduct of state and local governments.
15) Agency commissioners are appointed in staggered terms.