One of the Biggest Differences Between a Cabinet-Level Department (Agency)

question 56

Multiple Choice

One of the biggest differences between a cabinet-level department (agency) and an independent regulatory commission is that ______.

• A) the president may not remove a commissioner of an independent regulatory commission because of policy disagreements
• B) independent regulatory commissions are part of the judicial branch
• C) an independent regulatory commission does not make policy
• D) only cabinet department heads are confirmed by the Senate

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Definitions:

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service, crucial for decision-making in production levels.

Natural Monopoly

A market condition where a single firm can supply a product or service to an entire market at a lower cost than what would be possible if there were multiple firms due to economies of scale.

Production

The process of creating goods or services through the combination of labor, materials, and technology, which contributes to economic output.

Maximum Profit

The highest possible financial gain that a company can achieve in a given period under existing conditions.