Reading 15: Regulation and Antitrust Policy in a Globalized E

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发表于 2011-3-6 10:40 | 只看该作者

Consumers sometimes alter their behavior in response to the implementation of a new regulation. This unintended consequence of regulation is:

A)	a cost of regulation.

B)	a creative response.

C)	a feedback effect.

Consumers often react to regulations in ways that were unintended and unforeseen by regulators. These reactions may be positive or negative, but need to be considered when evaluating the full impact of a regulation.

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发表于 2011-3-6 10:41 | 只看该作者

Three years ago, regulators enacted a new law that was designed to reduce cigarette smoking by banning it in public workspaces. A recent consumer survey has indicated that although smoking is banned in the workplace, people are smoking even more than before, but in their homes and cars. Consumer reaction to the regulation can best be described as:

A)	the capture hypothesis.

B)	creative response.

C)	a feedback effect.

The regulation intended to reduce smoking led consumers to modify their behavior and smoke more in other “legal” places. This is an example of a feedback effect.

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发表于 2011-3-6 10:41 | 只看该作者

All of the following are benefits associated with social regulation EXCEPT:

A)	lower consumer prices.

B)	a less polluted environment.

C)	safer, higher-quality products and services.

Increased regulation tends to causes consumer prices to rise, because producers will generally pass any expenses associated with compliance on to consumers in the form of higher prices.

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发表于 2011-3-6 10:42 | 只看该作者

All of the following are negative consequences associated with social regulation EXCEPT:

A)	a decline in industry competitiveness.

B)	increased unemployment.

C)	higher production costs.

While some aspects of social regulation may increase a company’s expense per worker, increased unemployment is generally not associated with social regulation.

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发表于 2011-3-6 10:43 | 只看该作者

Which of the following statements regarding social regulation is least accurate?

A)	Some form of social regulation currently exists in all industries in the United States.

B)	Two of the primary goals of social regulation are increased product quality and improved workplace conditions.

C)	The benefits of social regulation are easily recognized and can be accurately quantified.

It is difficult to measure the benefits of social regulation because they may be qualitative rather than quantitative in nature, and the benefits may be spread out over time.