Business and Ethics ch 7

What law prohibit unfair, anti competitive practices by business?

Antitrust laws

What term refers to patterns of government collecting and spending funds that are intended to stimulate or support the economy?

Fiscal policy

The marketplace fails to adjust prices for the true cost of a firm's behavior is called?

Market failure

What term refers to policies that affect the supply, demand, in value of a nation's currency?

Monetary policy

What's a called where a concentration of the market is acquired by a few firms due to the nature of the industry rather than the cause of company practices?

Natural monopolies

___________ ____________ , or spillover effect, result when the manufacturer or distribution of a product gives rise to unplanned or unintended costs borne by consumers, competitors, neighboring communities, or other business stakeholders.

Negative external tease

What is a plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation's citizens?

Public policy

What policy does the government programs aimed at improving social welfare and such areas as health care and education?

Social assistance policy

What regulations are aimed at such important social goals as protecting consumers and the environment and providing workers was safe and healthy working conditions?

Social regulations

Deregulation is what?

The removal or a scaling down of regulatory authority and regulatory activities of government.

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.

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.

a. They encounter a common problem or enemy.

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

b. A government.

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.

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.

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.

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.

The test of what helps the public understand what is at stake when new regulations is sought?

cost benefit analysis

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.

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.

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.

A firm may not engage in what, the practice of selling below cost to driver rivals out of business?

predatory pricing