Unit 2.4 Quiz

Evaluate the impact of truth-in-advertising laws on consumer protection and market stability. Use evidence and reasoning in your answer.

• Truth-in-advertising laws help ensure that consumers receive accurate information, which builds trust and stability in the market.

• Truth-in-advertising laws make it harder for businesses to compete, leading to market instability.

• These laws only benefit producers by allowing them to charge higher prices.

• Truth-in-advertising laws are not enforced and have no impact on the market.

Analyze the role of the Environmental Protection Agency (EPA) as described in the text. How does the EPA's authority to draft regulations impact individuals, businesses, and other organizations? Provide reasoning based on the information given.

• The EPA's authority allows it to create mandatory regulations that affect a wide range of groups, ensuring compliance with environmental laws.

• The EPA only provides voluntary guidelines that individuals and businesses can choose to follow.

• The EPA enforces laws directly without creating any regulations or standards.

• The EPA's regulations are only applicable to federal government agencies.

Evaluate the potential challenges that groups might face in complying with EPA regulations, as mentioned in the text. What strategic considerations should organizations take into account?

• Organizations may face high costs in maintaining and following EPA regulations, requiring careful planning and resource allocation.

• Organizations can ignore EPA regulations without any consequences.

• EPA regulations are always easy and inexpensive to implement for all groups.

• Only individuals, not organizations, are affected by EPA regulations.

A country is experiencing an economic downturn, and the government decides to implement policies to stimulate business activity and investment. According to the image, which area of government protection is being prioritized, and what evidence supports this conclusion?

• Property

• Economy

• Workers

• Consumers

Imagine a scenario where a major bank in the United States is facing insolvency and customers are worried about losing their deposits. Which organization would be responsible for ensuring that customers' bank accounts are protected up to a certain amount, and what is that amount?

• Federal Reserve; $100,000

• Federal Deposit Insurance Corporation; $250,000

• National Credit Union Administration; $500,000

• Securities and Exchange Commission; $1,000,000

A new financial product is being introduced by a federal credit union, and there are concerns about the safety of consumer deposits and fair treatment. Which organization is responsible for regulating federal credit unions and protecting consumers in this context?

• Federal Reserve

• Federal Deposit Insurance Corporation

• National Credit Union Administration

• Federal Trade Commission

If there is a sudden and significant fluctuation in the stock market, which organization is tasked with regulating the securities market to ensure that commercial transactions remain secure and fair?

• Federal Reserve

• Securities and Exchange Commission

• Federal Deposit Insurance Corporation

• Federal Trade Commission

A government introduces a minimum wage that is above the equilibrium wage for low-skilled labor. Using evidence and reasoning, what are the potential economic consequences for the labor market?

• There will be a shortage of workers willing to work at the minimum wage.

• The minimum wage will have no impact on employment or wages.

• There may be a surplus of labor, leading to unemployment among low-skilled workers.

• All workers will receive higher wages and employment will increase.

A company in the United States employs 60 workers. According to federal law, what must the company provide to its employees, and what is the reasoning behind this requirement?

• The company must provide a minimum wage and paid vacation because all companies are required to offer both benefits.

• The company must provide a minimum level of health insurance because the Affordable Care Act requires companies with more than 50 employees to do so.

• The company must provide free housing because federal law mandates it for large employers.

• The company must provide stock options because it is required for companies with more than 50 employees.

How might the work of the NHTSA in reducing traffic injuries and fatalities through education, research, and law enforcement influence the broader economy? Provide a strategic analysis.

• It would have no effect on the economy.

• By reducing accidents, the NHTSA helps lower healthcare and insurance costs, increases productivity, and reduces economic losses from traffic incidents.

• It would only benefit car manufacturers.

• It would increase government spending without any benefits.