MGT CH 8

Deregulation is often:

A) A politically popular idea.

Managers' understanding of government regulations is:

A) Both a domestic and international issue.

Which of the following are examples of natural monopolies?

A) Electric utilities and railroads.

Economic policies include:

A) Fiscal and monetary policies.

Governments being asked to ban the use of cell phones by drivers are examples of a public policy:

A) Input

Public policy is a basic set of goals, plans and actions undertaken by:

B) .A government.

Deregulation has occurred in the following industries:

B) Commercial airlines, railroads, and financial institutions.

An example of a regulatory agency charged with enforcing social regulation is:

B) Federal Trade Commission.

Governments hold the power to:

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

An example of an early economic public policy was:

B) Public works projects of the Great Depression.

By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank:

Both A and B, but not C. A) Influences the size of the nation's money supply. B) Influences the value of the dollar.

The Mullahs in Iran is an example of the power of government derived from:

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:

C) Economic sanctions.

Patterns of government taxing and spending that are intended to stimulate or support the economy are:

C) Fiscal policies.

In 2012 the European Union imposed a carbon emissions fee on all airlines flying in and out of EU airspace that:

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

Public policy tools involve a combination of:

C) Incentives and penalties.

Studies show that texting while driving is:

C) More dangerous than talking on the phone while driving.

The primary way of accomplishing public policy is through:

C) Regulation.

Total social regulation costs are:

C) Significantly higher than total economic regulation costs.

Around the world, government:

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

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

D) Balance the relationship between business and society.

A national health care policy is an example of an economic policy.

False

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

False

In Europe, unions are prohibited by law to be on businesses' administrative boards.

False

Public policy effects are always unintended consequences of an action.

False

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

False

Regulation cannot be applied to international business behavior.

False

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

False

A cooperative government-business relationship on one issue does not guarantee cooperation on another issue.

True

Cost-benefit analysis is often used to determine the costs of regulation.

True

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

True

In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.

True

Monetary policies refer to policies that affect the supply, demand and value of the nation's currency.

True

Predatory pricing is a violation of antitrust laws.

True

Regulatory activity often is cyclical.

True

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

True

Cooperation between business and government often occurs when:

A) They encounter a common problem or enemy.

Regulation can be argued as justified based on:

B) Utilitarian and justice grounds.

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

D) Common Laws

Economic regulations:

D) Cut across industry lines.

Which car company did not seek bailout loans from the U.S. government following the 2009 worldwide economic recession?

D) Ford

Policies that affect the supply, demand, and value of a nation's currency are:

D) Monetary policies.

Which of the following is not an example of a social regulatory agency?

D) National Labor Relations Board.

Public policy effects are:

D) Sometimes intended and sometimes unintended.

Reregulation is:

The increase or expansion of government regulation.