QUESTION What are the three main purposes for which taxes are used? What will be an ideal response? ANSWER Answer: Taxes are used to pay for public services, such as schools, roads, and public safety. They are used to discourage certain behavior. Taxes on cigarettes and alcohol are meant to discourage smoking and drinking […]
QUESTION Hollister’s response suggests that he unreasonably assumes which of the following? A) Any attempt to reduce the personnel costs of the Legal Division cannot succeed. B) The number of managers in the Legal Division cannot be reduced. C) There can be no change in the number of employees supervised by Legal Division managers. D) […]
QUESTION Which of the four most important antitrust laws was set up primarily as a way to help enforce other antitrust laws? Explain. What will be an ideal response? ANSWER Answer: The Federal Trade Commission Act of 1914 established the Federal Trade Commission, which has the power to define unfair competition and to issue […]
QUESTION Agencies such as the Environmental Protection Agency, the Equal Employment Opportunity Commission, the Federal Trade Commission, and the Food and Drug Administration are designed to keep big business in line. What type of agency are they? What will be an ideal response? ANSWER Answer: These agencies are regulatory agencies, created to keep big […]
QUESTION Which of the following is NOT a category of consumer-protection law? A) food and drugs B) manufacturing C) labeling and packaging D) consumer product safety E) pricing and credit ANSWER Answer: B Explanation: B) There are four categories of consumer-protection laws: food and drugs, labeling and packaging, consumer product safety, and pricing and […]
QUESTION SnowDonuts, a maker of snow tubes, owes many thousands of dollars to suppliers of the plastic from which the tubes are made. The suppliers have asked the courts to force SnowDonuts to repay. But SnowDonuts just got its three biggest orders ever. What would the courts likely do? A) have SnowDonuts file voluntary Chapter […]
QUESTION Which of the following is NOT a tax the government levies on U.S. citizens? A) income tax B) property tax C) excise tax D) value-added tax E) ill-health tax ANSWER Answer: E Explanation: E) The principal ways the government raises revenue is by levying the following taxes: income tax, property tax, sales tax, […]
QUESTION The Consumer Financial Protection Bureau is an independent agency housed in the Federal Reserve with its own budget and director and the authority to prevent or correct financial abuses. Which of the following does the CFPB NOT do? A) restrict unfair, deceptive, or abusive practices B) monitor financial markets for new risks to consumers […]
QUESTION Sergio’s, a manufacturer of fine china, sells a place setting to department stores for $65.00 and to interior decorators for $82.00. Sergio’s can be prosecuted under what Act? A) the Sherman Antitrust Act B) the Clayton Act tying contracts clause C) the Clayton Act exclusive dealing clause D) the Robinson-Patman Act E) the Federal […]
QUESTION Monica has an interior decorating business. She claims that her main rug supplier, Persian Footfalls, offers her competitive pricing on the rugs only if she agrees to also purchase wall tapestries from the company. Monica can file a complaint against Persian Footfalls under what act? A) the Clayton Act B) the Sarbanes-Oxley Act C) […]
