15: Regulation and Antitrust Policy in a Globalized 2010, following, potential, benefits, possible

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Session 4: Economics: Economics for Valuation
Reading 15: Regulation and Antitrust Policy in a Globalized Economy

LOS b: Discuss the potential benefits and possible negative side effects of social regulation.

 

 

 

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

A) a less polluted environment.

B) safer, higher-quality products and services.

C) lower consumer prices.

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

A) a less polluted environment.

B) safer, higher-quality products and services.

C) lower consumer prices.

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

A) a decline in industry competitiveness.

B) higher production costs.

C) increased unemployment.

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

A) a decline in industry competitiveness.

B) higher production costs.

C) increased unemployment.

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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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Which of the following statements regarding social regulation is FALSE?

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

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

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

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Which of the following statements regarding social regulation is FALSE?

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

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

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

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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.

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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) a feedback effect.

C) creative response.

土豆妮

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) a feedback effect.

C) creative response.

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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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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.

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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.

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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.