BUS 345: Chapter 11 MC

Most congressional legislation before the 1950s that affected business was

(A) economic in nature

Which of the following is not a method that government uses to influence business?

(A) lobbying

A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is called a(n)

(A) natural monopoly

The act of governing or bringing under the control of law or constituted authority is called

(A) regulation

Governmental regulations that seek to further societal objectives are examples of

(A) social regulation

Industrial policy is

(B) a powerful non-regulating approach by government to influence business

Government is generally thought to follow the ethic of

(B) collectivism

After the 1950s, most Congressional legislation that affected business was

(B) concerned largely with the quality of life

The dilemma of regulation is the tradeoff between

(B) effective control and the burden placed on firms

There has always been a strong reaction in the US to any form of industrial policy because

(B) it conflicts with the widely held view of government's role in the economy

All of the following are reasons that government regulation of business is needed except

(B) maintain competitive markets

Government attempts to persuade business to act in the public interest are called

(B) moral suasion

Which of the following is not an effect of induced costs?

(B) new agencies may be created

The question of whether current public functions should be performed by the government of private sector is addressed by

(B) privatization

The primary purpose of deregulation is to

(B) remove certain industries from old-line economic regulations

Arguments against privatization include all of these except

(B) service provisions

Negative externalities are often referred to as

(B) social costs

Government payments to industries or groups with special qualifications are called

(B) subsidies

Arguments against industrial policy include all of the following except

(B) the need to rescue "sunset" industries

The dilemma of deregulation is

(B) to enhance competition within the industry without sacrificing applicable social regulations

Government intervention in monopolistic industries is often brought about by

(C) anticompetitive practices

Which of the following industries has not been affected by deregulation

(C) computer software

Government regulation of business through the control of economic or market variables is a form of

(C) economic regulation

Which of the following is not a role increasing government's complex relationship with business?

(C) government cannot have buying power

Business generally follows the ethic of

(C) individualism

The clash of ethical systems between government and business is centered around

(C) individualist and collectivist ethics

Every form of state intervention that affects industry as a distinct part of the economy is called

(C) industrial policy

The primary reason for government regulation of business is

(C) market failure

Modem goals for business include all of the following except

(C) promoting the social welfare

Government influences business through all of the following non-regulatory methods except

(C) requiring equal employment opportunities be granted to job applicants

The newest types of social regulations is concerned primarily with

(C) security

The newer form of industrial policy is exemplified by

(D) Robert Reich's book, "American Frontier"

Which of the following is not a concern expressed by executives about government involvement in business?

(D) US adults said government should do more

Government regulations have been criticized for all of the following reasons except

(D) being ineffective

Social regulation's focus on people encompasses their roles as all of the following except

(D) business owners

The public and government use all of the following methods of influencing each other except

(D) coercion

Which of the following is not mentioned as a frustration executives have with government officials, according to a recent McKinsey survey?

(D) concerned that government aims to redistribute the balance of wealth

The opposite of privatization could be considered

(D) federalization

A strong industrial policy:

(D) helps firms compete in a fast-moving global economy

Which of the following is not a major reason given for governmental regulation

(D) maintaining a trade surplus with foreign countries

Arguments for industrial policy include all of the following except

(D) stifling innovation

Which of the following is not considered a part of the induced costs of regulation?

(D) the effect on consumers

Government intervention in business began with

(b) a push for tariffs

The reason that the US government passed anti-trust legislation was

(c) due to the anti-competitive practices of some large trusts

Government's new role in its relationship with business during the New Deal era was one of

(d) restoring prosperity and promoting economic growth