BUSA 2106 UPDATED ACTUAL Questions and CORRECT Answers
1. In the U.S., the major actions that society delegates provide laws that are logi-
to government is to . cally deduced from the U.S.
Constitution and the Bill of
encourage larger companies to conduct business in Rights and to enforce these
many other countries laws through the judicial
create more jobs system.
provide laws that are logically deduced from the U.S.
Constitution and the Bill of Rights and to enforce
these laws through the judicial system.
keep prices of products low so that all consumers can
purchase convenience and luxury good
2. Because no government system is perfect legal and regulatory sys-
. tems are constantly evolv-
ing and changing in re-
the "invisible hand of competition" has replaced sponse to social institu-
many business and economic regulations tions, including business
legal and regulatory systems are constantly evolving
and changing in response to social institutions, in-
cluding business
companies do not have to worry about meeting every
law and regulation, since they are likely to change
self-regulatory mechanisms have created less of a
need for government oversight
3. What is the definition of regulation? The act of creating and en-
forcing rules for a specific
Changing or deleting existing laws or regulations to purpose
provide less oversight of business activities, opera-
tion, and outcomes
The act of creating and enforcing rules for a specific
purpose
, New technology that displaces an established tech-
nology and changes an industry or a unique new
product that creates a completely new industry
The law used to prevent businesses from restraining
trade and monopolizing markets
4. results when just one business pro- Monopoly
vides a good or service in a particular market.
Trust
Monopoly
Lower prices due to that company's efficiency
Oligopoly
5. Which of the following is least likely to be considered Collaborating with a com-
destructive or unfair competition? petitor to establish prices
so that each firm can en-
Collaborating with a competitor to establish prices so sure a certain level of profit
that each firm can ensure a certain level of profit
Lowering prices significantly in an effort to drive com-
petitors out of a market, and then raising prices after-
wards
Obtaining information through careful monitoring of
the competitive environment
Using a "bait and switch" method for selling products
to customers
6. Utility companies that supply electricity, natural gas, monopolies
water, or cable television are examples today of
.
patent laws
trusts
, monopolies
self-regulatory agencies
7. are expenditures by organizations to Compliance costs
meet regulatory requirements, such as reporting ac-
tivities.
Administration and enforcement costs
Costs of legal consultants
Compliance costs
Sustainability costs
8. are expenditures by government to Administration and en-
develop and administer regulatory requirements, in- forcement costs
cluding the salaries of government workers, hiring in-
spectors, purchasing office supplies, and other over-
head expenses.
Costs of legal consultants
Sustainability costs
Administration and enforcement costs
Compliance costs
9. To generate a measurement of the costs of regu- economic or social
lation, economists generally classify regulations as
.
economic or social
standardized or industry-specific
ethical or legal
safety-related or environment-related
10.
1. In the U.S., the major actions that society delegates provide laws that are logi-
to government is to . cally deduced from the U.S.
Constitution and the Bill of
encourage larger companies to conduct business in Rights and to enforce these
many other countries laws through the judicial
create more jobs system.
provide laws that are logically deduced from the U.S.
Constitution and the Bill of Rights and to enforce
these laws through the judicial system.
keep prices of products low so that all consumers can
purchase convenience and luxury good
2. Because no government system is perfect legal and regulatory sys-
. tems are constantly evolv-
ing and changing in re-
the "invisible hand of competition" has replaced sponse to social institu-
many business and economic regulations tions, including business
legal and regulatory systems are constantly evolving
and changing in response to social institutions, in-
cluding business
companies do not have to worry about meeting every
law and regulation, since they are likely to change
self-regulatory mechanisms have created less of a
need for government oversight
3. What is the definition of regulation? The act of creating and en-
forcing rules for a specific
Changing or deleting existing laws or regulations to purpose
provide less oversight of business activities, opera-
tion, and outcomes
The act of creating and enforcing rules for a specific
purpose
, New technology that displaces an established tech-
nology and changes an industry or a unique new
product that creates a completely new industry
The law used to prevent businesses from restraining
trade and monopolizing markets
4. results when just one business pro- Monopoly
vides a good or service in a particular market.
Trust
Monopoly
Lower prices due to that company's efficiency
Oligopoly
5. Which of the following is least likely to be considered Collaborating with a com-
destructive or unfair competition? petitor to establish prices
so that each firm can en-
Collaborating with a competitor to establish prices so sure a certain level of profit
that each firm can ensure a certain level of profit
Lowering prices significantly in an effort to drive com-
petitors out of a market, and then raising prices after-
wards
Obtaining information through careful monitoring of
the competitive environment
Using a "bait and switch" method for selling products
to customers
6. Utility companies that supply electricity, natural gas, monopolies
water, or cable television are examples today of
.
patent laws
trusts
, monopolies
self-regulatory agencies
7. are expenditures by organizations to Compliance costs
meet regulatory requirements, such as reporting ac-
tivities.
Administration and enforcement costs
Costs of legal consultants
Compliance costs
Sustainability costs
8. are expenditures by government to Administration and en-
develop and administer regulatory requirements, in- forcement costs
cluding the salaries of government workers, hiring in-
spectors, purchasing office supplies, and other over-
head expenses.
Costs of legal consultants
Sustainability costs
Administration and enforcement costs
Compliance costs
9. To generate a measurement of the costs of regu- economic or social
lation, economists generally classify regulations as
.
economic or social
standardized or industry-specific
ethical or legal
safety-related or environment-related
10.
