QUESTION 16 Social regulation O a. is government regulation aimed at preventing monopoly and fostering competition in markets where competition is desirable. O b. is the ability of a firm to raise the price without losing all its sales to rivals. O c. tries to improve health and safety, such as by control of unsafe working conditions and dangerous products. O d. is government regulation of natural monopoly, where, because of economies of scale average production cost is lowest when a single firm supplies the market. O e. is any firm facing an upward sloping demand curve. QUESTION 17 If producers support a proposed regulation in favor of their industry, then O a. it is possible that consumers will be adversely affected by the legislation. O b. it is likely that prices will fall. O c. it is likely that the regulation will eliminate deadweight loss. O d. it is likely that both producers and consumers will be adversely affected by the legislation. O e. it is likely that consumers will benefit from the regulation. QUESTION 18 Which of the following is a possible drawback of the growth of international trade in the United States? O a. It has led to an increase in the demand for domestic goods. O b. It has led to an increase in the number of goods available to consumers. O c. It has led to a decrease in the prices of products O d. It has made the local or even national market share less relevant. O e. It has led to a decrease in the prices of foreign goods. QUESTION 19 The Consumer Product Safety Commission is an example of_ O a. economic regulation. O b. antitrust policy. O c. social regulation. O d. market power. O e. economies of scale. QUESTION 20 The Sherman Act O a. prohibited fraudulent advertising. O b. created the Federal Trade Commission. O c. regulated the railroads O d. exempted insurance companies from antitrust laws. O e. prohibited restraint of trade.QUESTION 21 Political candidates frequently try to get elected by appealing to O a. labor unions. O b. the median voter. O c. taxpayers. O d. other political candidates. O e. private markets. QUESTION 22 A limit on special-interest contributions to national political campaigns O a. would reduce the extent of rent seeking. O b. would involve widespread costs and concentrated benefits. O c. is an example of competing-interest legislation. O d. would give challengers an edge over incumbents. O e. is usually supported by special-interest groups as a way of saving money