Which Statement Is Accurate in Its Description of Consumer Protection

question 49

Multiple Choice

Which statement is accurate in its description of consumer protection?

• A)The Consumer Product Safety Commission has the power to order recalls.
• B)Statistics show that,in fact,safety regulations rarely succeed in increasing safety.
• C)Critics agree that the cost of safety regulations and product recalls are negligible.
• D)Safety regulations permit people to choose to save money by purchasing riskier (but less expensive) products.

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Definitions:

Keynes's Followers

Individuals or economists who support or develop the theories of John Maynard Keynes, relating to government intervention in the economy to manage aggregate demand.

Monetary Policy

Actions of a central bank, currency board, or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.

MPC

Marginal Propensity to Consume, the proportion of an increase in income that gets spent on consumption.

Multiplier Effect

The phenomenon where an initial increase in spending leads to a larger increase in income and consumption within the economy.