models of government and business quiz

Question 1

Which of the following is NOT one of the three areas in which Adam Smith says the government has a duty to act?

Protecting society from the invasion of other nations

Protecting each member of society from injustice or oppression by others

Developing and maintaining public works and infrastructure

Seeing that each business employs proper division of labor so as to maximize efficiency

Question 2

One of the major legal developments in the history of the US, is the guarantee of __________ (2 words) as this guarantee reduces the risk of enterprise and and encourages entrepreneurs to undertake projects which further economic development because they are confident the product of their undertakings will not be unjustly taken.

Question 3

Alexander Hamilton offered numerous justifications for taxing wine and spirits. Which of the following is NOT one of Hamilton’s justifications?

These items have inelastic demand, so there is no other way to get citizens to decrease their consumption.

These items are luxuries and are used in excess.

The consumption of these items has a negative impact on society.

Taxing these items allows the nation to bring in revenue without resorting to direct taxation.

Question 4

The essential function of government in this state is to lessen the undesirable consequences of market activity within the bounds of a competitive economy.

The regulatory state

The framework state

The social service state

The promotional state

Question 5

The _______ _______ and the _________ ________ allowed for notable increases in overall productivity and notable decreases in the prices of goods.

Commerce Act and horse and buggy

Supreme Court and Restrictive arrangements

Factory system and industrial revolution

Copper boom and alcohol prohibition

Question 6

Select the phrase below that came from Alexander Hamilton’s writing on the government’s role in the economy.

It is not from the benevolence of the butcher that we expect our dinner, but from his regard to his own interest.

The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it.

The saving which a duty and decreased consumption would occasion, would leave individuals more at their ease, and promote a more favorable balance of trade.

The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted to no single person.

Question 7

In their ruling on the case of NLRB v. Jones and Laughlin Steel Corp, the Supreme Court reversed course from many of their earlier rulings and found that…

The President had no power to regulate working conditions.

The US Congress had the authority to regulate industrial relations.

Industrial relations was a forbidden field into which Congress shall not enter.

States did not have the authority to regulate industrial activity.

Question 8

The ______________________ created the Interstate Commerce Commission, which was tasked with regulating railroads and required that railroads publish their shipping rates.

National Industrial Recovery Act of 1933

Sherman Antitrust Act of 1890

Interstate Commerce Act of 1887

Transportation Fairness Act of 1912

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