Question

"When the bacteria Salmonella was found in the jars of peanut butter, the Food and Drug Administration (FDA) issued a recall. As a result, the product's manufacturer, PBJ Industries, experienced a record drop in sales, while the company's main competitor, Uncle Jerry's Peanut Spread, saw the largest sales growth in the company's history. "

Background information:

This is a sample excerpt from a business news article. Think about what the excerpt has to say about the role of regulation.

What primary role of regulatory agencies is the article excerpt referring to? Check all that apply.

to promote competition
to protect consumers
to ensure product safety
to maintain public health standards
to increase food industry subsidies

Answer 1

Applicable roles (check all that apply):

- to protect consumers — yes. The FDA recall protected consumers from contaminated food.
- to ensure product safety — yes. The recall addresses unsafe product (Salmonella).
- to maintain public health standards — yes. Removing contaminated food helps safeguard public health.

Not applicable:

- to promote competition — no. The sales shift to a competitor was an indirect market effect, not the agency's primary goal.
- to increase food industry subsidies — no. The FDA recall does not involve subsidies.