Chapter 7 Business- Government Relations

Government's role is to create and enforce laws that:

Balance the relationship between business and society.

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

Breaking up a monopoly.

Past decisions of the courts, the original basis for the U.S. legal system, are called:

Common Laws

social regulators

EEOC, OSHA, FTC, EPA

Identify the federal regulation agencies that oversee economic regulation. (Check all that apply.)

FDIC, DOJ IRS, SEC

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

False

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

False

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

False

A cooperative partnership between government and business on one issue guarantees cooperation on all issues.

False The relationship between government and business changes frequently, and collaboration on one issue does not necessarily mean cooperation on another.

Select all of the descriptions that relate to each policy type.

Fiscal policy: government spending Monetary policy: currency supply and demand Trade policy: rules that govern imports and exports to and from foreign nations

Which of the following are reasons governments and businesses may work in opposition to each other?

Government regulations can be costly to businesses. Government regulations can stifle innovation.

Match the public policy element listed with a valid example related to distracted driving.

Input: Pressure from state governments Goals: Prevention of death and injury Tools: Penalties for cell phone usage while driving Effects: Reduction of death and injury reports

Match the reason for government regulation with its correct description.

Market failure: when the marketplace fails to correctly adjust prices Negative externalities: unintended negative effects Natural monopolies: just a few firms in a certain industry Ethical arguments: a moral rationale for regulation

Government regulations help balance negative externalities such as:

No smoking rules enforced to mitigate the effects of second-hand smoke.

A plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation's citizens is called _____.

Public policy

How have regulators responded to critics of banning cell-phone usage while driving?

Regulators permitted the use of hands-free phone devices.

In nondemocratic countries, government may derive power from which authorities? (Check all that apply.)

Religious group Monarchy Military dictatorship

Globally, what is the primary factor that affects how governments and businesses collaborate?

Societal values and customs

Why did the drone makers want the U.S. Federal Aviation Administration to regulate the drone industry?

The industry wanted rules so they could develop drones for commercial purposes.

Which of the following are true of public policy goals?

They are broad and high-minded. They can be narrow and self-serving.

How do the major types of public policy relate to one another?

They are sometimes intertwined. They are at times distinct from each other.

Public policy goals are accurately described by which statements? (Check all that apply.)

They can be broad and high-minded goals. They can be narrow and self-serving goals.

Which of the following are reasons for governments to act in public interest?

To solve public issues To effect a substantial segment of the public

Government incentives and penalties represent which element of public policy

Tools

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

True

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

True

Match the type of government control (in the left column) with its correct definition (in the right column).

regulation: the initial implementation of a government control over industry conduct deregulation: the removal or scaling down of existing government controls over industry reregulation: the increase or expansion of government control over industry practices