Deck 8: Business-Government Relations

Question 1

Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries.

Answer 1

True

Question 2

A cooperative government-business relationship on one issue does not guarantee cooperation on another issue.

Answer 2

True

Question 3

Governments hold the power to:

A) Grant permission for only specific business activity.
B) Grant or refuse permission for many types of business activity.
C) Refuse permission for only government funded activity.
D) None of the above.

Answer 3

B

Question 4

Public policy effects are always unintended consequences of an action.

Question 5

Monetary policies refer to policies that affect the supply, demand and value of the nation's currency.

Question 6

In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.

Question 7

Regulation cannot be applied to international business behavior.

Question 8

Government's role is to create and enforce laws that:

A) Control businesses' actions in society.
B) Protect businesses' interest in society.
C) Protect society from business.
D) Balance the relationship between business and society.

Question 9

Cost-benefit analysis is often used to determine the costs of regulation.

Question 10

In 2009, the International Monetary Fund and the World Bank projected that the global economic crisis would lead to losses:

A) Within the financial sector only.
B) Of more than $4 trillion in the value of stock and other assets.
C) That would prohibit governments from imposing any new regulations.
D) Of less than $4 million in the value of stock and other assets.

Question 11

Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand.

Question 12

Government and business together establish the regulatory rules under which business operates in society.

Question 13

Around the world, government:

A) Tends to cooperate with business.
B) Tends to be in conflict with business.
C) Sometimes cooperates and sometimes is in conflict with business.
D) Tends to be controlled by business.

Question 14

Regulatory activity often is cyclical.

Question 15

Managers' understanding of government regulations is:

A) Both a domestic and international issue.
B) Primarily a domestic issue.
C) Primarily an international issue.
D) An international issue only for large firms.

Question 16

Most experts can agree the government spending on U.S. regulatory activities will begin to decrease by the early 2010s.

Question 17

In Europe, unions are prohibited by law to be on businesses' administrative boards.

Question 18

Public policy is a plan of action undertaken by business to influence the government.

Question 19

A national health care policy is an example of an economic policy.

Question 20

The chairman of the International Chamber of Shipping called on the United Nations to loosen global emissions regulations for all vessels.

Question 21

Regulation can be argued as justified based on:

A) Collective market theory.
B) Utilitarian and justice grounds.
C) The life cycle of regulation.
D) Tradition.

Question 22

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank:

A) Influences the size of the nation's money supply.
B) Influences the value of the dollar.
C) Minimizes investor confidence about the nation's future.
D) Both A and B, but not

Question 23

Cooperation between business and government often occurs when:

A) They encounter a common problem or enemy.
B) Business can afford it.
C) Business is required by law to cooperate.
D) Government has the support of the people.

Question 24

Economic regulations:

A) Can only exist for 37 years unless renewed.
B) Apply only to older industries.
C) Always conflict with social regulation.
D) Cut across industry lines.

Question 25

Which of the following are examples of natural monopolies?

A) Electric utilities and railroads.
B) Cable television and the media.
C) Internet services and trucking.
D) None of the above.

Question 26

Patterns of government taxing and spending that are intended to stimulate or support the economy are:

A) International standards policies.
B) Social assistance policies.
C) Fiscal policies.
D) Monetary policies

Question 27

An example of an early economic public policy was:

A) The abolition of slavery.
B) Public works projects of the Great Depression.
C) The creation of the Homeland Security Office.
D) President Johnson's Great Society programs.

Question 28

Public policy tools involve a combination of:

A) Incentives and political favors.
B) Penalties and prison terms.
C) Incentives and penalties.
D) Political favors and prison terms.

Question 29

Public policy effects are:

A) Impossible to measure.
B) Easily quantifiable for the trained public policy expert.
C) Only known ten years after the public policy is enacted.
D) Sometimes intended and sometimes unintended.

Question 30

The National Safety Council estimate that motorists using cell phones are:

A) As safe as motorists who do not use cell phones.
B) Responsible for 6% of U.S. auto accidents each year.
C) Ten times more likely to crash.
D) More likely to contract ear infections.

Question 31

The primary way of accomplishing public policy is through:

A) Waiting for businesses to act.
B) Lobbying Congress.
C) Regulation.
D) Writing your politician.

Question 32

The Mullahs in Iran is an example of the power of government derived from:

A) A monarchy.
B) A military dictatorship.
C) A religious authority.
D) A democracy.

Question 33

Public policy is a basic set of goals, plans and actions undertaken by:

A) Political lobbyists.
B) A government.
C) Business advocacy groups.
D) Police and fire departments.

Question 34

An example of a regulatory agency charged with enforcing social regulation is:

A) Federal Aviation Administration.
B) Federal Trade Commission.
C) Federal Communications Commission.
D) Internal Revenue Service.

Question 35

Which of the following is not an example of a social regulatory agency?

A) Consumer Product Safety Commission.
B) Equal Employment Opportunity Commission.
C) National Highway Traffic Safety Administration.
D) National Labor Relations Board.

Question 36

Past decisions of the courts, the original basis for the U.S. legal system, are called:

A) Torts.
B) Amendments.
C) Legitimate actions.
D) Common laws.

Question 37

Policies that affect the supply, demand, and value of a nation's currency are:

A) International standards policies.
B) Social assistance policies.
C) Fiscal policies.
D) Monetary policies.

Question 38

Economic policies include:

A) Fiscal and monetary policies.
B) Monetary and social assistance policies.
C) Fiscal and social assistance policies.
D) Policies initiated by the Federal Reserve System.

Question 39

Governments being asked to ban the use of cell phones by drivers are examples of a public policy:

A) Input.
B) Goal.
C) Effect.
D) Tool.

Question 40

An example of an illegitimate government can be seen in:

A) Myanmar (Burma).
B) Russia.
C) The United States.
D) Spain.

Question 41

Deregulation has occurred in the following industries:

A) Commercial airlines, sheet metal, and interstate trucking.
B) Commercial airlines, railroads, and financial institutions.
C) Commercial airlines, interstate trucking, and silicon chip manufacturing.
D) Financial institutions, railroads, and silicon chip manufacturing.

Question 42

Total social regulation costs are:

A) Slightly higher than total economic regulation costs.
B) Slightly less than total economic regulation costs.
C) Significantly higher than total economic regulation costs.
D) Equal to total economic regulation costs.

Question 43

Government regulations come in different forms. Discuss the major types of government regulations of business.

Question 44

What could the United States government do about the out of control costs of regulation and the staffing of regulatory agencies in the United States?

Question 45

Compare and contrast economic policies with social assistance policies.

Question 46

Why does international regulation occur? Discuss the conditions that affect the regulation of business in a global context.

Question 47

Identify and compare the four reasons why governments turn to regulation as a way to solve their problems.

Question 48

In 2008 two new global regulations to reduce injuries from accidents by better safety glazing of windows and mandating more geometric fitting head restraints in all vehicles were adopted by the:

A) United Nations.
B) European Commission.
C) National Transportation and Safety Board.
D) World Forum for Harmonization of Vehicle Regulations.

Question 49

Deregulation is often:

A) A politically popular idea.
B) A politically unpopular idea.
C) Seen during a Democratic federal administration.
D) Found in European countries but not in the United States.

Question 50

Define each key element of public policy process and provide an illustration or example for each element.

Question 51

Reregulation is:

A) The adoption of regulation in another country to promote trade.
B) Necessary since all regulation has a time limit.
C) The increase or expansion of government regulation.
D) The shifting of regulation to the state level from the national level.

Question 52

How do governments seek to cooperate with or work at arm's length with business? Does it matter whether the government is legitimately elected or has illegitimately acquired power?