Macroeconomics: Policy and its Effects
Which statement best describes the idea of monetarism? Monetary policy is the best way to
influence economic growth.
What are the main purposes of regulatory policies? Check all that apply. -to protect
constitutional rights, safety, and fairness
-to ensure that property rights are protected
-to create regulation in a mixed-market economy only when needed
Which of these outcomes are possible negative externalities? Check all that apply. -
increased traffic in the neighborhood surrounding the factory
-pollution from trucks making deliveries to the factory
Read this sample food label. Which regulatory goals are met by the label? Check all that apply.
-informing consumers about products
-helping consumers make educated choices
-ensuring that producers are responsible for product contents
According to the chart, which regulatory agency provides the greatest monetary benefit to the
public? EPA
According to the chart, which regulatory agency had the fewest regulations studied? USDA
Which of these are duties of the SEC? Check all that apply. -overseeing the actions of brokers
and financial advisers
-ensuring the security and fairness of mutual funds and exchanges
-bringing suits against businesses that are not following securities laws
Which of these are goals of financial regulation? Check all that apply. -preventing
monopolies
-ensuring that businesses accurately report their earnings
-keeping prices fair
According to President Obama, what are the reasons for the financial crisis? President
Obama indicates that there are several reasons for the financial crisis. According to the
president, one reason is irresponsible practices by financial institutions. The amount of risk
involved in newly created investments was high, and few investors or consumers understood
