For Many Years, Congressman Ricardo Perez Has Called for More

question 235

Multiple Choice

For many years, Congressman Ricardo Perez has called for more government regulation of business. "After all," the Congressman said recently, "businesspeople are out to make a profit, not to create jobs or serve their customers. The government must pass more laws to require businesses to take the interests of consumers and workers into account." From these comments, it is clear that Congressman Perez:

• A) agrees with the ideas of Thomas Malthus.
• B) does not accept the "invisible hand" idea brought forth by Adam Smith.
• C) is unaware of the fact that most businesses in the United States are owned by the government.
• D) does not realize that government regulation is already the main determinant of business decisions in capitalist economies.

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Definitions:

Reduction of the Principal

The process of decreasing the initial amount of money borrowed or invested over time.

10th Payment

The tenth installment of a series of payments in a loan or mortgage.

Compounded Semi-Annually

Interest on an amount that is calculated twice a year and added to the principal for future interest calculations.

Amortized

The process of paying off debt through regular payments over a set period, where the payments cover both principal and interest.