Chapter 8A

The Administrative Procedure Act (APA) provides for both __________ and __________ rule-making processes for legislative rules.

a) conditional; unconditional

b) actual; virtual

c) formal; informal

d) primary; secondary

c

The National Highway Traffic Safety Administration (NHTSA) issued a rule requiring all new vehicles under 10,000 pounds to have rear visibility technology by 2018. This rule is an example of an administrative agency’s application of its __________ rules.
a) interpretive
b) judicial
c) procedural
d) legislative

d

Which of the following is an example of an executive function performed by a federal administrative agency?
a) Enacting enabling legislation
b) Enacting industry-specific safety standards for workers
c) Creating rules that are, in effect, laws
d) Regulating the banking industry

d

Which of the following rules delineate the agency’s internal operating structure and methods?
a) Interpretive rules
b) Legislative rules
c) Substantive rules
d) Procedural rules

d

Which of the following is an example of federal regulatory agency of information compelling business conduct?
a) Directing that information must be regularly provided by companies with stock traded in public markets
b) Preventing the entry of a particular product into the market
c) Uniform pricing of cable television services
d) Banning an existing product from the market

c

Which of the following is not one of the three (3) broad categories of the regulatory authority of federal administrative agencies?
a) Control of international relations
b) Control of conduct
c) Control of rates
d) Control of supply

a

An independent agency is brought into existence and granted the agency substantial authority to regulate specified segments of American life by Congress enacting a statute called __________.
a) substantiation legislation
b) creation legislation
c) territorial legislation
d) enabling legislation

d

Which of the following are the two (2) kinds of federal administrative agencies?
a) Executive and judicial
b) Legislative and executive
c) Legislative and independent
d) Executive and independent

d

Which of the following was the first federal regulatory agency?
a) The Workers’ Compensation Commission
b) The Uniform Commerce Commission
c) The Federal Trade Commission
d) The Interstate Commerce Commission

d

Which of the following is correct regarding licensed occupations between 1960 and now?
a) In 1960 almost half of workers needed to be licensed versus five percent now.
b) In 1960 there were no licensed occupations in the United States.
c) There has been no significant change in the percentage of people employed in licensed occupations.
d) In 1960 only about five percent of workers needed to be licensed versus twenty-five percent now.

d

What was the United States Supreme Court’s holding in Tennessee Wine and Spirits Retailers Association v. Tennessee Alcoholic Beverage Commission?
a) Discrimination against out-of-state alcohol producers was contrary to the Commerce Clause allowed by the Twenty-First Amendment
b) Prohibition against alcohol was ended
c) The dormant Commerce Clause does not apply to regulated industries such as alcohol sales
d) Discrimination against out-of-state alcohol producers was contrary to the Commerce Clause

d

The negative aspect of the Commerce Clause that it prohibits state laws that unduly restrict interstate commerce is known as __________.
a) extant Regulatory Clause
b) innate Supremacy Clause
c) dormant Commerce Clause
d) extant Supremacy Clause

c

In the event of an irreconcilable conflict between federal law and state law, the Commerce Clause of the United States Constitution provides that__________.
a) both laws are unconstitutional
b) federal law will preempt the state law
c) both laws are enforceable
d) state law will preempt the federal law

b

Which of the following refers to the right of state governments to promote public safety, morals, and welfare by regulating powers and property within the state’s jurisdiction?
a) Supremacy Clause
b) police power
c) The Ninth Amendment
d) public goods

b

Which of the following is not a recognized stage of Tomain’s life cycle regarding government regulation of an industry?
a) Government regulation imposed as a rule
b) The free market itself
c) Identification of a market failure
d) An industry specifically requests government regulation

d

A business deciding to buy more of its inputs locally is a characteristic example of a __________.
a) condition subsequent
b) positive externality
c) positive internality
d) public accommodation

b

Judicial review of administrative agency action is narrow in scope, and courts can address only specific agency action raised in cases presented to them.
a) true
b) false

a

Administrative agencies enact three types of rules: procedural rules; interpretive rules; legislative rules.
a) true
b) false

a

Agency commissioners are appointed in staggered terms, typically of three years’ duration.
a) true
b) false

b

The Federal Energy Regulatory Commission (FERC) has exclusive jurisdiction over regulating utilities in the public interest.
a) true
b) false

b

In the event of an irreconcilable conflict between federal and state law, the Supremacy Clause of the United States Constitution provides that federal law will preempt state law, thereby rendering it unconstitutional.
a) true
b) false

a

Federal authority over interstate commerce affords the federal government very broad power to regulate commercial activities across the United States.
a) true
b) false

a

Purely intrastate commerce can never be regulated by the federal government.
a) true
b) false

b

The Commerce Clause of the United States Constitution broadly specifies the power accorded to the federal government to regulate business activity.
a) true
b) false

a

When all the costs and benefits of a good or service are not fully internalized or absorbed by producers or consumers, those costs or benefits fall elsewhere as what economists have labeled externalities.
a) true
b) false

a

In theory, government intervention in a free enterprise economy would never be justified, even when the market is unable to serve the public interest.
a) true
b) false

b