Government Regulation of Competition
What is the main goal of government regulation of competition ?
To prevent monopolies and promote fair competition.
Why does the government regulate prices in some industries?
To protect consumers and ensure affordability of essentials.
What is the purpose of. consumer protection laws?
To prevent unfair or deceptive business practices.
What is deregulation?
The reduction or elimination of government control in an industry.
what is an administrative agency?
A government body created to carry out specific laws and regulations.
Which U.S. law was the first major legislation against monopolies?
The Sherman Antitrust Act of 1890.
What are price ceilings?
Legal maximum prices set by the government.
Which agency handles consumer financial complaints?
The Consumer Financial Protection Bureau.
Why might the government increase regulation?
To protect public safety and fairness.
Name two examples of administrative agencies.
FDA and EPA
what is price-fixing?
When two or more companies agree to set prices instead of letting the market decide.
What is a price floor?
The lowest legal price that can be charged for a product.
What is false advertising?
Misleading consumers through untrue or exaggerated product claims.
What are the benefits of regulation?
Consumer protection and fair competition.
what powers do administrative agencies have?
Rulemaking, enforcement, and adjudication.
Which act strengthened the Sherman Act by banning price discrimination and exclusion contracts?
The Clayton Act of 1914.
Give one example of an industry where prices are regulated.
Utilities such as electricity or water.
Name one consumer protection law.
The fair packaging and Labeling Act.
What are some disadvantages of regulation?
Increased business costs and inefficiency.
what is rulemaking in administrative law?
The process by which agencies create new regulations.
Name a federal agency that enforces antitrust laws.
The Federal Trade Commission (FTC).
What happens when prices are set below market equilibrium?
Shortages occur because demand exceeds supply.
How do antitrust laws protect consumers?
By ensuring fair competition and preventing price manipulation.
What is Congress’s role in administrative agencies?
Congress creates agencies and defines their power.
Which act govens how agencies propose and establish regulation?
The Administrative procedure Act ( APA) of 1946.