Deck 8: Business-Government Relations

Question 1

Regulation cannot be applied to international business behavior.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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 5

Public policy effects are always unintended consequences of an action.

Question 6

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

Question 7

Regulatory activity often is cyclical.

Question 8

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

Question 9

Which car company did not seek bailout loans from the U.S.government following the 2009 worldwide economic recession?

A) Toyota.
B) General Motors.
C) Chrysler.
D) Ford.

Question 10

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

Question 11

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 12

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 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

Predatory pricing is a violation of antitrust laws.

Question 18

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.

Question 19

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

Question 20

The United Nations oversees all international agreements concerning regulations between nations.

Question 21

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 22

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 23

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 24

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 25

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 26

When a government orders companies not to conduct business in another country because of a war,human rights violations,or lack of a legitimate government; these orders are called:

A) Government bailouts.
B) Political sanctions.
C) Economic sanctions.
D) Government stop-orders.

Question 27

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 28

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 29

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 30

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 31

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 32

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 33

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 34

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 35

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 36

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 37

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 38

Studies show that texting while driving is:

A) Less dangerous than talking on a phone while driving.
B) Less dangerous than driving while drunk.
C) More dangerous than talking on the phone while driving.
D) Just as dangerous as talking on a phone while driving.

Question 39

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 40

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 41

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

Question 42

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

Question 43

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 44

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 45

Compare and contrast economic policies with social assistance policies.

Question 46

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

Question 47

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 48

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 49

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?

Question 50

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 51

In 2012 the European Union imposed a carbon emissions fee on all airlines flying in and out of EU airspace that:

A) Successfully raised funds through fees to limit greenhouse gas emissions.
B) Garnered great support from the Chinese and U.S. governments.
C) Generated great opposition from more than two dozen countries.
D) Effectively eliminated green house gas emissions in its airspace.

Question 52

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