Which of the Following Is True of Administrative Agencies

question 41

Multiple Choice

Which of the following is true of administrative agencies?

• A) All administrative agencies directly answer to the president.
• B) Administrative agencies can be created by federal, state, and local governments.
• C) An existing administrative agency cannot administer a new law.
• D) A separate administrative agency must be created to enforce each law.

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Definitions:

Excess Capacity

The situation in which a business can produce more goods or services than currently demanded, often leading to inefficiencies.

Product Life Cycle

The progression of a product through stages of introduction, growth, maturity, and decline in the market.

Commoditization

The process by which unique products become indistinguishable from one another in the eyes of the market, often leading to competition based primarily on price.