Deck 12: Business Influence on Government and Public Policy

Question 1

Lobbying takes place only at the federal government level.

Answer 1

False

Question 2

A political strategy for public activism is keeping an issue off the public agenda and out of the limelight.

Answer 2

True

Question 3

An umbrella organization has a broad base of membership that represents businesses in several different industries.

Answer 3

True

Question 4

The money that PACs donate to political candidates has brought about great benefit to the political system.

Question 5

Lobbyists are generally interested in the common good.

Question 6

For large corporations today,political involvement is not optional and government has granted them more power to do so.

Question 7

Leadership PACs were designed to allow lawmakers holding safe seats to funnel money to colleagues without a risk of not being reelected.

Question 8

To be effective,grassroots lobbying must be genuine,or at least appear to be genuine.

Question 9

Most of the challenges to the Bipartisan Campaign Reform Act were based on the right to free speech.

Question 10

Government is not a central stakeholder of business.

Question 11

Lobbyists are affectionately known as "influence peddlers."

Question 12

So many loopholes in federal regulations have been closed that the only way for business to circumvent regulations is by avoiding taxes.

Question 13

PACs allow labor to organize their giving.

Question 14

PACs are uniformly well thought of in American society.

Question 15

Because it represents a single industry or line of business,a trade association is able to present a unified message when lobbying Congress.

Question 16

PACs are,by their nature,quite different from lobbying.

Question 17

Individuals are less restricted in their contributions to political candidates than are PACs.

Question 18

Because of the difficulty in coordinating the effort,grassroots lobbying is no longer used extensively.

Question 19

The way in which most legislation gets passed is through special-interest politics.

Question 20

So called "hard money" refers to campaign contributions that are given directly to the candidates.

Question 21

Lobbying efforts that do not represent the genuine concerns of the citizens supposedly involved is called

A)grassroots lobbying.
B)astroturf lobbying.
C)cyberadvocacy.
D)company lobbying.

Question 22

Business lobbyists do all of the following things for their clients except

A)establish communications channels with regulatory bodies.
B)protect firms against surprise legislation.
C)audit the effects of passed legislation.
D)help draft legislation.

Question 23

Astroturf lobbying is massively regulated.

Question 24

When a business assumes an advocacy role for its interests,it is

A)doing what is normal and expected.
B)breaking the law.
C)operating at the trade association level.
D)allowing government to influence it.

Question 25

The process of influencing public officials to promote or secure the passage or defeat of legislation is known as

A)bribery.
B)activism.
C)lobbying.
D)suffrage.

Question 26

Current approaches seem to marginalize business and trade associations.

Question 27

Lobbying takes place at all of the following levels except

A)umbrella organizations.
B)PACs.
C)trade associations.
D)company lobbying.

Question 28

When a firm advocates for its own special interest,it is

A)acting as an umbrella organization.
B)representing its trade association.
C)harming it labor union.
D)company lobbying.

Question 29

Which of the following is not a major approach that business uses to influence government?

A)lobbying
B)PACs
C)coalition building
D)vigilance

Question 30

The number of registered lobbyists has decreased along with the amount of money spent on lobbying.

Question 31

One recommendation to make cyberadvocacy more effective is for advocates to

A)make their e-mails targeted to the recipient and specific in nature.
B)send their e-mails to all members of Congress.
C)include attention-grabbing subject lines in their e-mails.
D)provide no identifying information in order to protect their privacy.

Question 32

Participation in the formulation and execution of public policy at various levels of government is

A)available only to individual citizens.
B)required by the constitution.
C)lobbying.
D)political involvement.

Question 33

Using the Internet to communicate with grassroots supporters and enable them to contact their legislators is termed

A)grassroots lobbying.
B)astroturf lobbying.
C)cyberadvocacy.
D)company lobbying.

Question 34

Lobbying organizations that represent the collective business interests of the United States are called

A)umbrella organizations.
B)trade associations.
C)labor unions.
D)company lobbying.

Question 35

The process of mobilizing individual citizens who might be most directly affected by legislative activity to political action is called

A)grassroots lobbying.
B)astroturf lobbying.
C)cyberadvocacy.
D)company lobbying.

Question 36

Which of the following is not usually a function that lobbyists serve for their clients?

A)monitoring legislation
B)helping members of Congress get reelected
C)organizing grassroots efforts
D)helping former members of Congress find jobs

Question 37

Lobbying organizations that are composed of many firms in a given industry or line of business are called

A)umbrella organizations.
B)trade associations.
C)labor unions.
D)company lobbying.

Question 38

The central product of the new breed of lobbyist is

A)influence.
B)access.
C)advice.
D)information.

Question 39

Special-interest politics results in a balance of power among the organizations advocating for their positions,thus serving

A)their individual interests.
B)the public interest.
C)no one's interest.
D)government's interest.

Question 40

As the regulatory environment has become more complex,businesses have had little choice but to

A)move offshore.
B)follow the rules closely.
C)become more politically active.
D)avoid the political process.

Question 41

The top PAC contributor during the 2010 election cycle was

A)International Brotherhood of Electrical Workers.
B)Teamsters.
C)Service Employees International Union.
D)Lockheed Martin.

Question 42

Which of the following is not an umbrella organization?

A)Chamber of Commerce
B)National Association of Manufacturers
C)Pharmaceutical Research and Manufacturers of America
D)Business Roundtable

Question 43

More sophisticated statistical techniques used to investigate the connection between PAC giving and congressional voting provide results that

A)show a causal connection.
B)are mixed.
C)show no connection.
D)show a weak relationship.

Question 44

Which of the following conditions is not conducive to the effectiveness of PAC contributions?

A)when the issue is specialized
B)when the issue is narrow
C)when PACs adapt lobbying techniques to their contribution strategies
D)when the issue is highly visible

Question 45

In lobbying,a trade association often uses

A)written phone banks.
B)use grassroots lobbying support.
C)lagging promotion.
D)limited spending.

Question 46

The National Association of Manufacturers (NAM)has been

A)receiving accolades from its small and medium-sized members for focusing on their particular needs.
B)advocating for protectionist trade policies.
C)having a difficult time recently,with a slow recovery in the manufacturing sector.
D)credited with helping create the gain in manufacturing jobs.

Question 47

PAC contributions are most effective when all of the following conditions prevail except

A)when the issue is less visible.
B)during the early stages of the legislative process.
C)when the issue is unimportant to the member of Congress.
D)when PACs are allied.

Question 48

Simple correlations indicate that there is a connection between PAC giving and

A)growth in the number of PACs.
B)membership in PACs.
C)congressional voting.
D)tax loopholes.

Question 49

The Golden Rule of Politics is

A)do unto others before they do unto you.
B)do unto others as you would want done to you.
C)he who has the gold,rules.
D)do unto others as they would want done to them.

Question 50

The problem with PACs is

A)their lack of acceptance within the business sector.
B)the growing dependence of politicians on PAC money to get elected.
C)their reliance on bribery to influence politicians.
D)their ability to avoid paying taxes.

Question 51

Which industry was noted for spending more on lobbying than all others?

A)gaming
B)oil
C)pharmaceutical
D)auto

Question 52

The principal instruments through which business uses its financial resources to influence government are

A)umbrella organizations.
B)political action committees.
C)trade associations.
D)lobbyists.

Question 53

Distinct groups or parties that realize they have something in common,so that it makes sense for them to join forces,typically form

A)joint ventures.
B)partnerships.
C)coalitions.
D)limited liability corporations.

Question 54

The Business Roundtable is an association of

A)Fortune 500 companies.
B)CEOs of leading companies.
C)leading consulting firms.
D)human resource executives.

Question 55

One of the ways that the Chamber of Commerce has regained its power is by

A)making large campaign contributions on its own behalf.
B)dispensing favors to individual businesses that do not want their company name associated with lobbying efforts.
C)hiring outside lobbyists to help it attract more members.
D)focusing on international trade issues.

Question 56

Which of the following is not a reason that PAC money is so influential?

A)It is easy for politicians to get.
B)The cost of getting elected is rising quickly.
C)Politicians are dependent on it.
D)There are no strings attached to it.

Question 57

The primary focus of the Business Roundtable is

A)free trade policies.
B)taxation policies.
C)the economic well-being of the nation.
D)executive compensation.

Question 58

Those who support PACs and collect and donate money are

A)candidates for the U.S.Senate.
B)the business community.
C)Democratic candidates.
D)Presidential candidates.

Question 59

Some of the most vocal opposition to PACS comes from

A)business leaders.
B)taxpayers.
C)coalitions.
D)current and past members of Congress.

Question 60

The National Federation of Independent Businesses (NFIB)attributes its newfound power to

A)the growth of multinational companies.
B)globalization.
C)its new status as a trade association.
D)its success at grassroots lobbying.

Question 61

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Lobbyists often show legislators the benefits and detriments of complex legislation.Discuss the wisdom of allowing lobbyists to perform this function.

Question 62

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Lobbyists have been identified as having very narrow self-interests.Apparently some of these interests go no further than lining their own pockets,with no regard for their clients' needs.Research the activities of Jack Abramoff and Michael Scanlon in connection with their representation of several Native American tribes and their gambling casinos.

Question 63

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why might PACs lose their effectiveness?

Question 64

Provide a short answer to each of these questions.Be sure to fully explain your answer.
The Chamber of Commerce has reinvigorated itself partially by representing the interests of individual companies that do not want their names attached to certain lobbying efforts.Certain coalitions also provide companies with this anonymity.Why would a company want to keep its name out of the public eye in lobbying efforts? and what resulting impacts has this had for them?

Question 65

Provide a short answer to each of these questions.Be sure to fully explain your answer.
The National Association of Manufacturers (NAM)experiences conflict among its members over the question of free trade among nations.Why is this a contentious issue for NAM members?

Question 66

The purpose of the Bipartisan Campaign Reform Act was to

A)limit the cost of political campaigns.
B)reduce the number of political ads on television.
C)remove the influence of soft money on candidates.
D)regulate the amount of money given directly to candidates.

Question 67

The collection of individual donations that are then delivered to candidates in a lump sum is called

A)cumulative contributions.
B)mass donations.
C)bundling.
D)collectivism.

Question 68

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products illegal to sell.How would these companies keep this issue off the public agenda and out of the limelight?

Question 69

Provide a short answer to each of these questions.Be sure to fully explain your answer.
The authors state that we must be constantly vigilant of possible abuses of power or violations of sound ethics as we investigate the political influence of business.Why is this true?

Question 70

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Provide a summary of new legislation impact on campaign funding.

Question 71

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Microsoft was able to effectively counter the effects of an antitrust suit in the United States.The European Commission has also made charges that Microsoft exploited its monopoly position in several foreign countries.Investigate the resolution of this case.Also,how has Microsoft used this win to their benefit?

Question 72

Contributions made to political parties instead of candidates are called

A)indirect contributions.
B)soft money.
C)inside contributions.
D)slush funds.

Question 73

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
The textbook notes that Rep.Billy Tauzin of Louisiana,chief architect of the new Medicare prescription drug law,has received a lucrative job offer to lobby for the pharmaceutical industry.News commentators suggest that if he takes the job he will have already earned his salary because the Medicare bill is expected to provide windfall profits for the drug companies.Chapter 10 said that one of the reasons government regulates business is to control excess profits.Are "windfall" profits for the pharmaceutical industry "excessive?" If so,how can we reconcile government's efforts to regulate against excess profits with Tauzin's ability to draft legislation that provides windfall profits?

Question 74

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Are the arguments for PACs more compelling than those against these organizations? Explain your position.

Question 75

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Federal laws require a waiting period of one year before former government officials can discuss private business matters with anyone in the White House.Why does this provision exist? Is one year a sufficient waiting period?

Question 76

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Should PACs be outlawed? Why or why not?

Question 77

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What can be done to limit the influence of money on the political process?

Question 78

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What's the danger of a company not being able to define a public issue.

Question 79

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the role of political activity to the success of business.