Deck 4: The Political Environment

Question 1

What do the initials TUC stand for?

A) Trade Union Committee
B) Trades Union Congress
C) Transport Union Council
D) Trade Union Council

Answer 1

B

Question 2

The ability of business to respond effectively to market conditions, such as fluctuations in demand or sales, through flexible employment arrangements can be referred to as:

A) Social responsibility
B) Labour market flexibility
C) Employee protection
D) Right to manage

Answer 2

B

Question 3

Where the market system has popular support and there is a general belief that the market is a key element of a good society, this can be referred to as:

A) Social responsibility
B) Good governance
C) Legitimacy
D) Consumer sovereignty

Answer 3

C

Question 4

During the 1980s in the UK the political goal of 'rolling back' the state (i.e. reducing its size) has been referred to by the term:

A) Keynesian welfare consensus
B) Neoliberalism
C) Socialism
D) Mixed economy

Question 5

Which of the following models of capitalism is based on an 'optimistic' view of markets?

A) The minimal state
B) The developmental state
C) The Keynesian welfare state
D) The social-democratic state

Question 6

The term 'market failure' refers to:

A) Closure of a business due to bankruptcy
B) Tax avoidance by companies
C) The inability of the market, if left to itself, to produce socially desirable outcomes such as limiting pollution and global warming
D) Corrupt dealings between business and government

Question 7

What is meant by the term 'tax competitiveness'?

A) A company avoiding tax to gain a competitive advantage
B) Having a more effective system of tax collection than other countries
C) Having a lower rate of corporation tax than other countries in order to attract business investment
D) A retailer paying the VAT (value added tax) on goods in order to compete on price

Question 8

What are the basic features of democracy? Please select all that apply.

A) Universal suffrage
B) Private ownership of business
C) Civil liberties or rights
D) Regular elections

Question 9

What is politics? Please select all that apply.

A) Politics can be defined in terms of the decisions people make for themselves about how they live their own lives
B) Politics can be defined in terms of competing views or values about the kind of society we want to live in-the 'good society'
C) Politics can be defined in terms of the competitive pursuit of profit by private business
D) Politics can be defined in terms of making and enforcing the rules or laws which are necessary for us to live together in society

Question 10

Which of the following can be seen as aspects of the social-democratic (Keynesian welfare) state? Please select all that apply.

A) Privatization of nationalized industries
B) Economic policy focused on tackling inflation
C) Nationalization of key industries
D) Provision by government of a range of public services-the welfare state

Question 11

The basic features of democracy include the following. Please select all that apply.

A) An economic system based on the market and private sector business
B) Universal suffrage (right to vote)
C) The provision of a range of public services funded by taxation (welfare state)
D) Media organizations that are independent from government

Question 12

In a market economy government is normally involved in a range of relationships with business, including: (Please select all that apply.)

A) The provision of services and resources
B) The collection of tax
C) Controlling the allocation of investment between industries
D) Setting the legal framework

Question 13

In the post-war years (1950s and 1960s) there was a broad consensus on government social and economic policy in the UK. This can be referred to in the following terms: (Please select all that apply.)

A) Commitment to 'big government'
B) Neoliberal consensus
C) Anti-statism
D) Keynesian welfare consensus

Question 14

Which of the following were elements of the neoliberal approach in the UK during the 1980s? Please select all that apply.

A) Macroeconomic policy to secure economic stability and full employment
B) Support for a 'minimal' state
C) An optimistic view of markets
D) An emphasis on deregulation of business

Question 15

George Osborne set out the case for lower taxes. What reasons did he give for this aim? Please select all that apply.

A) People should be free to decide for themselves how to spend their own money
B) Greed is good
C) Lower taxes boost competitiveness
D) Individuals should be more self-reliant, less dependent on the state

Question 16

In what ways can it be argued that there is a good 'fit' between democracy and a market economy? Please select all that apply.

A) Political stability
B) Business has a political voice
C) The rule of law
D) Changes of government can lead to changes in economic policy

Question 17

The capacity to make and enforce the rules under which we live is a unique form of power in society, exercised only by government or the state.

Question 18

'Businesses never operate in a truly free market'.

Question 19

In a market system based on private ownership of business and the right to manage, employers are free to decide the nature of workplace rules, such as the terms and conditions of employment.

Question 20

Between 2010 and 2017 the rate of corporation tax in the UK was reduced from 28 per cent to 19 per cent.