Chapter 7 & 8 Questions

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.

A. Electric utilities and railroads.

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.

A. They encounter a common problem or enemy.

When a firm solicits its stockholders for political contributions for a particular candidate by letter and then sends those contributions to the candidate on behalf of its stockholders, it is called: A. Lobbying. B. Bundling.

B. Bundling.

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.

B. Commercial airlines, railroads, and financial institutions.

Which political action strategy seeks to gain support from other affected organizations to better influence policymakers? A. Information strategy. B. Constituency-building strategy.

B. Constituency-building strategy.

In recent annual Harris polls, which entity did Americans believe had the greatest amount of political power? A. Small businesses. B. Large businesses. C. Political action committees. D. Lobbyists.

B. Large businesses.

When managers become personally involved in developing public policy, the firm is at what level of business political involvement? A. Limited organizational involvement. B. Moderate organizational involvement. C. Aggressive organizational involvement.

C. Aggressive organizational involvement.

A corporate political strategy does not: A. Hinder a competitor's ability to compete economically. B. Seek to continue the firm's economic survival or growth. C. Determine the legal limits allowed for campaign financing. D. Exercise a firm's right to a voice in government affairs.

C. Determine the legal limits allowed for campaign financing.

When a business seeks to overturn a law after it has been passed or threatens to challenge the legal legitimacy of the new regulation in the courts, this is called: A. Accumulating. B. Overturn lobbying. C. Legal challenges.

C. Legal challenges.

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.

C. Significantly higher than total economic regulation costs.

Businesses promote an information strategy by inviting government leaders to: A. Visit local plant facilities. B. Attend company award ceremonies. C. Give speeches to employees. D. All of the above.

D. All of the above.

The typical public affairs executive spends most of the day: A. Coalition building. B. Direct lobbying. C. Fund raising. D. All of the above.

D. All of the above.

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.

D. All of the above.

A common tactic in a financial-incentive political strategy is: A. Lobbying. B. Legal challenges. C. Expert witness testimony. D. Political contributions.

D. Political contributions.

Which of the following is not a constituency-building strategy tool? A. Expert witness testimony. B. Advocacy advertising.

A. Expert witness testimony.

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.

B. Federal Trade Commission.

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.

B. Grant or refuse permission for many types of business activity.

In 2011, the Global Electoral Organization (GEO) discussed which critical election administration issues? A. How to disengage electoral stakeholders. B. The role of the media in elections. C. How to increase election disputes.

B. The role of the media in elections.

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.

B. Utilitarian and justice grounds.

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.

C. Sometimes cooperates and sometimes is in conflict with business.

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.

C. The increase or expansion of government regulation.

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.

D. Balance the relationship between business and society.

Proponents of business as a political participant argue: A. A pluralistic system invites many participants. B. It is business's constitutional right to be involved. C. Business is a vital stakeholder of government. D. Both A and C, but not B.

D. Both A and C, but not B.

What method(s) did the businesses opposed to Arkansas' "religious freedom" laws use to influence lawmakers? A. Filed a lawsuit. B. Made public announcements. C. Hired private lobbyists. D. Both B and C, but not A.

D. Both B and C, but not A.

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.

D. Cut across industry lines.

A company that builds stakeholder coalitions to influence government is using which strategy? A. Informational. B. Financial-incentives. C. Constituency-building.

C. Constituency-building.

Since 2011, the total amount spent on lobbying activity has: A. Remained exactly the same. B. Doubled. C. Decreased slightly.

C. Decreased slightly.

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.

C. Fiscal policies.

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.

A. A politically popular idea.

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.

A. Anticompetitive practices by business.

Managers' understanding of government regulations is:

A. Both a domestic and international issue.

To influence government policymakers' actions, an information strategy involves: A. Business leaders speaking before government policymakers. B. Government policymakers hiring special interest groups for fact-finding projects.

A. Business leaders speaking before government policymakers.

One of the oldest financial-incentive strategy tools is: A. Political action committee contributions. B. Political consulting aid.

A. Political action committee contributions.

To help control political favoritism, there have been global efforts to: A. Promote fairness in the electoral process. B. Control the rapid decrease in campaign costs. C. Diminish the role of political parties.

A. Promote fairness in the electoral process.

Firms in the chemical industry, which must contend with frequently changing environmental regulations and the risk of dangerous accidents, usually have: A. No defined political strategy. B. A sophisticated political strategy.

B. A sophisticated political strategy.

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.

B. Breaking up a monopoly.

The information strategy tool most used by business is: A. Political contributions. B. Lobbying. C. Legal challenges.

B. Lobbying.

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.

C. A religious authority.

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.

C. Economic sanctions.

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.

C. Generated great opposition from more than two dozen countries.

Expert witness testimony is often collected: A. Through company newsletters. B. On the steps of the White House. C. In Congressional hearings.

C. In Congressional hearings.

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.

C. Incentives and penalties.

Hiring former government officials for positions in the corporate world is: A. Normally legal. B. Always unethical. C. Considered unethical by over 50% of Americans. D. A and C, but not B.

D. A and C, but not B.

Public policies and government regulations are shaped by: A. Business. B. Special interest groups. C. Government. D. All of the above.

D. All of the above.

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.

D. Monetary policies.

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.

D. National Labor Relations Board.

Governments being asked to regulate driving distractions are examples of a public policy: A. Input. B. Goal. C. Effect. D. Tool.

A. Input.

Advocacy ads are also called: A. Issue advertisements. B. Research and development plans.

A. Issue advertisements.

Economists reported that the costs of regulatory compliance were highest for: A. Vehicle safety. B. Antitrust issues. C. Worker safety. D. Consumer protection.

C. Worker safety.

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.

D. Common laws.

Lobbyists, under U.S. law, must disclose their: A. Political affiliation and expenses. B. Earnings. C. Expenses. D. Earnings and expenses.

D. Earnings and expenses.

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.

C. Market failure.

The primary way of accomplishing public policy is through: A. Waiting for businesses to act. B. Lobbying Congress. C. Regulation. D. Writing your politician.

C. Regulation.

European Union regulators accused Uber of engaging in: A. Price-fixing. B. False advertising. C. Unfair competition. D. Unhealthy working conditions.

C. Unfair competition.

Which of these statements accurately describes a Super PAC? A. Allows limited contributions from unions. B. Allows limited contributions from individuals. C. Is also called the dependent expenditure-only committee. D. Does not allow direct contributions to candidates or political parties.

D. Does not allow direct contributions to candidates or political parties.

In a survey of 110 companies in 2014, the most frequent public affairs tactic was related to: A. Grassroots issues. B. Political action committees. C. Issues management. D. Federal government regulations.

D. Federal government regulations.

Dark money refers to: A. Anonymous contributions to for-profit organizations. B. Money collected illegally by PACs. C. Soft money. D. Undisclosed contributions to tax-exempt organizations.

D. Undisclosed contributions to tax-exempt organizations.

Economic leverage occurs when a business uses it economic power to: A. Hire lobbyists to gain a desired political action. B. Pay for the costs of regulation to acquire a desired political action. C. Threaten to leave a location unless a desired political action is taken.

C. Threaten to leave a location unless a desired political action is taken.

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 C.

D. Both A and B, but not C.

Supporters of advocacy advertisements believe that they: A. Identify a company as an interested and active stakeholder. B. Can help mold public opinion on a particular policy issue. C. Increase union activity and long-term expenses for an organization. D. Both A and B, but not C.

D. Both A and B, but not C.