ch. 11/12 ethics

The central product of the new breed of lobbyist is a. influence. b. access. c. advice. d. information.

b. access.

After the 1950s, most Congressional legislation that affected business was a. economic in nature. b. concerned largely with the quality oflife. c. supportive of business. d. aimed at promoting competition.

b. concerned largely with the quality oflife.

The dilemma of regulation is the tradeoff between a. cost and efficiency. b. effective control and the burden placed on firms. c. private gain and public good. d. individualistic and collectivistic goals.

b. effective control and the burden placed on firms.

All of the following are reasons that government regulation of business is needed except a. to ensure that customers and employees are treated fairly. b. maintain competitive markets. c. to protect the envirornnent. d. to ensure that customers and employees are not exposed to unreasonable hazards.

b. maintain competitive markets.

The primary purpose of deregulation is to a. decrease competition in the affected industries. b. remove certain industries from old-line economic regulations. c. protect the natural envirornnent. d. allow natural monopolies to form.

b. remove certain industries from old-line economic regulations.

Arguments against privatization include all of these except: a. social goals. b. service provisions. c. public backlash. d. safety concerns.

b. service provisions.

The dilemma of deregulation is a. to enhance competition within the industry without harming workers' status. b. to enhance competition within the industry without sacrificing applicable social regulations. c. to prevent monopolies without allowing hypercompetition. d. to provide business more freedom without completely abandoning goverrnnental authority.

b. to enhance competition within the industry without sacrificing applicable social regulations.

Which of the following industries has not been affected by deregulation? a. fmancial services. b. trucking c. computer software d. airline

c. computer software

government influences business through all of the following nonregulatory methods except a. being a major employer. b. being a standard setter. c. requiring equal employment opportunities be granted to job applicants. d. providing transfer payments.

c. requiring equal employment opportunities be granted to job applicants.

The newest type of social regulations is concerned primarily with a. envirornnental protection. b. corporate welfare. c. security. d. educational reform.

c. security.

The newer form of industrial policy is exemplified by: a. a focus on enabling industrialization. b. Karl Aiginer's book, "Industrial Policy: A Dying Breed or a Re-emerging Phoenix?" c. policy that does not conflict with widely held view on the role of government in the economy. d. Robert Reich's book, "American Frontier."

d. Robert Reich's book, "American Frontier."

Goverrnnent regulations have been criticized for all the following reasons except a. being too extensive. b. being too costly. c. being burdensome to business. d. being ineffective.

d. being ineffective.

A strong industrial policy: a. is present in most developing countries. b. is a term heard continuously. c. is goverrnnent intervention. d. helps frrms compete in a fast-moving global economy

d. helps frrms compete in a fast-moving global economy

Which of the following is not considered a part of the induced costs of regulation? a. the effect on innovation b. the effect on investments in plant and equipment c. the effect on small business d. the effect on consumers

d. the effect on consumers

financial incentives strategy

making direct financial contributions,, providing desired services, reimbursing travel, paying fees to policymakers

constituency building strategy

mobilizing grassroots or bus cohorts to work together thru public relations, political education, press conferences, and advertising

economic government regulation regulates business behavior through:

1. controlling and influencing economic or market variables such as max and min prices 2. entry to and exit from markets 3. types of services offered

reasons for govt regulation

1. controlling natural monopolies 2. controlling negative externalities 3. achieving social goals 4. control excess profits 5. deal with excessive competition

govt regulation has 3 types of costs:

1. direct 2. indirect 3. induced

types of govt regulation

1. economic 2. social

examples of social regulation

1. equal employment opportunities commission 2. occupational safety and health admin 3. EPA

government's non regulatory influence on business

1. industrial policy 2. privatization 3. government as a standard setter 4. monetary policy 5. taxation 6. govt as a purchaser 7. govt as an employer 8. subsidies 9. transfer payments 10. govt as competitor 11. govt loans 12. goats moral suasion

3 strategies for interacting w decision makers in political arena

1. information strategy 2. financial incentives strategy 3. constituency building strategy

induced costs of govt reg

1. innovation may be affected 2. new investments may be affected 3. small bus may be adversely affected

examples of economic regulation

1. interstate commerce commission 2. civil aeronautics board 3. federal communications commission

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.

a. doing what is normal and expected.

Most Congressional legislation before the 1950s that affected business was a. economic in nature. b. social regulation. c. aimed at protecting individuals' rights. d. to protect consumers' privacy.

a. economic in nature.