The History of Economic Regulation

Description: This quiz will test your knowledge on the history of economic regulation.
Number of Questions: 15
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Tags: economics economic regulation history
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In the United States, the first federal agency to regulate economic activity was the:

  1. Interstate Commerce Commission

  2. Federal Trade Commission

  3. Securities and Exchange Commission

  4. Federal Reserve System


Correct Option: A
Explanation:

The Interstate Commerce Commission was established in 1887 to regulate the railroad industry.

The Sherman Antitrust Act of 1890 was enacted to:

  1. Break up Standard Oil

  2. Prevent the formation of monopolies

  3. Regulate the prices of goods and services

  4. Protect consumers from fraud and deception


Correct Option: B
Explanation:

The Sherman Antitrust Act was the first federal law to address the problem of monopolies.

The Clayton Act of 1914 was enacted to:

  1. Strengthen the Sherman Antitrust Act

  2. Regulate the prices of goods and services

  3. Protect consumers from fraud and deception

  4. Encourage the formation of cartels


Correct Option: A
Explanation:

The Clayton Act was enacted to strengthen the Sherman Antitrust Act by prohibiting specific practices that were deemed to be anti-competitive.

The Federal Trade Commission Act of 1914 was enacted to:

  1. Break up Standard Oil

  2. Prevent the formation of monopolies

  3. Regulate the prices of goods and services

  4. Protect consumers from fraud and deception


Correct Option: D
Explanation:

The Federal Trade Commission Act was enacted to protect consumers from fraud and deception by prohibiting unfair or deceptive trade practices.

The Securities Act of 1933 was enacted to:

  1. Regulate the stock market

  2. Protect investors from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: B
Explanation:

The Securities Act of 1933 was enacted to protect investors from fraud and deception by requiring companies to disclose information about their financial condition before selling their securities to the public.

The Securities Exchange Act of 1934 was enacted to:

  1. Regulate the stock market

  2. Protect investors from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Securities Exchange Act of 1934 was enacted to regulate the stock market by requiring companies to register with the Securities and Exchange Commission and to disclose information about their financial condition.

The Public Utility Holding Company Act of 1935 was enacted to:

  1. Break up Standard Oil

  2. Prevent the formation of monopolies

  3. Regulate the prices of goods and services

  4. Encourage the formation of cartels


Correct Option: C
Explanation:

The Public Utility Holding Company Act of 1935 was enacted to regulate the prices of goods and services provided by public utilities.

The Natural Gas Act of 1938 was enacted to:

  1. Regulate the natural gas industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Natural Gas Act of 1938 was enacted to regulate the natural gas industry by requiring companies to obtain a certificate of public convenience and necessity before constructing or operating a natural gas pipeline.

The Federal Power Act of 1935 was enacted to:

  1. Regulate the electric power industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Federal Power Act of 1935 was enacted to regulate the electric power industry by requiring companies to obtain a license before constructing or operating a hydroelectric power plant.

The Communications Act of 1934 was enacted to:

  1. Regulate the telecommunications industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Communications Act of 1934 was enacted to regulate the telecommunications industry by requiring companies to obtain a license before constructing or operating a telecommunications network.

The Civil Aeronautics Act of 1938 was enacted to:

  1. Regulate the airline industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Civil Aeronautics Act of 1938 was enacted to regulate the airline industry by requiring companies to obtain a certificate of public convenience and necessity before operating an airline.

The Motor Carrier Act of 1935 was enacted to:

  1. Regulate the trucking industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Motor Carrier Act of 1935 was enacted to regulate the trucking industry by requiring companies to obtain a certificate of public convenience and necessity before operating a trucking company.

The Railroad Revitalization and Regulatory Reform Act of 1976 was enacted to:

  1. Deregulate the railroad industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Railroad Revitalization and Regulatory Reform Act of 1976 was enacted to deregulate the railroad industry by eliminating many of the regulations that had been imposed on the industry since the late 19th century.

The Staggers Rail Act of 1980 was enacted to:

  1. Further deregulate the railroad industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Staggers Rail Act of 1980 was enacted to further deregulate the railroad industry by eliminating most of the remaining regulations that had been imposed on the industry.

The Telecommunications Act of 1996 was enacted to:

  1. Deregulate the telecommunications industry

  2. Protect consumers from fraud and deception

  3. Encourage the formation of cartels

  4. Break up Standard Oil


Correct Option: A
Explanation:

The Telecommunications Act of 1996 was enacted to deregulate the telecommunications industry by eliminating many of the regulations that had been imposed on the industry since the early 20th century.

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