Multiple Choice
Which of the following best explains the economic benefits of building a smaller courthouse instead of a larger one?
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0. Basic Principles of Economics
Positive and Normative Analysis
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Under the Commerce Clause, what authority does the federal government have?
A
Set state tax rates for local businesses
B
Determine state education standards
C
Control international trade with foreign nations
D
Regulate interstate commerce between states
Verified step by step guidance1
Understand that the Commerce Clause is a provision in the U.S. Constitution granting Congress the power to regulate commerce.
Recognize that the Commerce Clause specifically gives the federal government authority over trade and commercial activities that cross state lines or involve foreign nations.
Identify that setting state tax rates for local businesses is typically a state government power, not federal, because it concerns local economic activity.
Note that determining state education standards is generally a state responsibility and not covered under the Commerce Clause.
Conclude that the federal government, under the Commerce Clause, has the authority to regulate interstate commerce between states and control international trade with foreign nations.
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