Deck 7: Businessgovernment Relations

Question 1

Predatory pricing is a violation of antitrust laws.

Answer 1

True

Question 2

European Union regulators accused Uber of engaging in:

A) Price-fixing.
B) False advertising.
C) Unfair competition.
D) Unhealthy working conditions.

Answer 2

C

Question 3

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

Answer 3

False

Question 4

Regulatory activity often is cyclical.

Question 5

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 6

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 7

Regulation cannot be applied to international business behavior.

Question 8

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

Question 9

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 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

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

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

Question 17

Public policy effects are always unintended consequences of an action.

Question 18

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

Question 19

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

Question 20

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

Question 21

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 22

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 23

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 24

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 25

When the market fails to adjust for the full costs of a firm's behavior,this is called:

A) Negative externalities.
B) Deregulation.
C) Market failure.
D) Re-regulation.

Question 26

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 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)
C) Minimizes investor confidence about the nation's future.
D) Both A and B, but not

Question 28

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 29

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 30

Governments being asked to regulate driving distractions are examples of a public policy:

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

Question 31

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 32

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 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

Cooperation between business and government often occurs when:

A) They encounter a common problem or enemy.
B) Business can afford it.
C) Business operates at arm's length from the government.
D) Government has the support of the people.

Question 35

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 36

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 37

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 38

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 39

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 40

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 41

Which of these cost-savings measures saved U.S.regulatory agencies nearly $2 billion since 2011?

A) Promotion of telemedicine in rural areas.
B) Coordination of hazards warning with other nations.
C) Removal of redundant reporting requirements.
D) All of the above.

Question 42

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 greenhouse gas emissions in its airspace.

Question 43

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

Question 44

Which of the following represents a structural remedy for an antitrust violation?

A) Paying a large fine.
B) Breaking up a monopoly.
C) Disclosure of company information to rivals.
D) Agreeing to change a firm's conduct.

Question 45

How do governments seek to cooperate with or oppose business? Does it matter whether the government is legitimately elected or has illegitimately acquired power?

Question 46

Economists reported that the costs of regulatory compliance were highest for:

A) Vehicle safety.
B) Antitrust issues.
C) Worker safety.
D) Consumer protection.

Question 47

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

Question 48

Compare and contrast economic policies with social assistance policies.

Question 49

Antitrust laws protect consumers from:

A) Anticompetitive practices by business.
B) Selling products above cost to drive away rivals.
C) Conspiring with business partners to increase competition.
D) Firms using market dominance to expand commerce.

Question 50

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 51

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

Question 52

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