BUS 345: Chapter 11 MC – Flashcards
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Government intervention in business began with
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(b) a push for tariffs
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The reason that the US government passed anti-trust legislation was
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(c) due to the anti-competitive practices of some large trusts
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Government's new role in its relationship with business during the New Deal era was one of
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(d) restoring prosperity and promoting economic growth
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Most congressional legislation before the 1950s that affected business was
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(A) economic in nature
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After the 1950s, most Congressional legislation that affected business was
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(B) concerned largely with the quality of life
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Modem goals for business include all of the following except
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(C) promoting the social welfare
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The clash of ethical systems between government and business is centered around
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(C) individualist and collectivist ethics
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Business generally follows the ethic of
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(C) individualism
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Government is generally thought to follow the ethic of
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(B) collectivism
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Which of the following is not mentioned as a frustration executives have with government officials, according to a recent McKinsey survey?
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(D) concerned that government aims to redistribute the balance of wealth
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Which of the following is not a method that government uses to influence business?
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(A) lobbying
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The public and government use all of the following methods of influencing each other except
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(D) coercion
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Every form of state intervention that affects industry as a distinct part of the economy is called
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(C) industrial policy
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The question of whether current public functions should be performed by the government of private sector is addressed by
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(B) privatization
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Arguments for industrial policy include all of the following except
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(D) stifling innovation
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Arguments against industrial policy include all of the following except
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(B) the need to rescue "sunset" industries
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A strong industrial policy:
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(D) helps firms compete in a fast-moving global economy
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Industrial policy is
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(B) a powerful non-regulating approach by government to influence business
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There has always been a strong reaction in the US to any form of industrial policy because
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(B) it conflicts with the widely held view of government's role in the economy
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The opposite of privatization could be considered
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(D) federalization
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Government influences business through all of the following non-regulatory methods except
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(C) requiring equal employment opportunities be granted to job applicants
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Government payments to industries or groups with special qualifications are called
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(B) subsidies
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Government attempts to persuade business to act in the public interest are called
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(B) moral suasion
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All of the following are reasons that government regulation of business is needed except
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(B) maintain competitive markets
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Government regulations have been criticized for all of the following reasons except
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(D) being ineffective
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The act of governing or bringing under the control of law or constituted authority is called
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(A) regulation
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The primary reason for government regulation of business is
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(C) market failure
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Which of the following is not a major reason given for governmental regulation
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(D) maintaining a trade surplus with foreign countries
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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)
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(A) natural monopoly
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Government intervention in monopolistic industries is often brought about by
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(C) anticompetitive practices
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Negative externalities are often referred to as
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(B) social costs
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Government regulation of business through the control of economic or market variables is a form of
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(C) economic regulation
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Governmental regulations that seek to further societal objectives are examples of
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(A) social regulation
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Social regulation's focus on people encompasses their roles as all of the following except
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(D) business owners
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The newest types of social regulations is concerned primarily with
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(C) security
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The dilemma of regulation is the tradeoff between
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(B) effective control and the burden placed on firms
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Which of the following is not considered a part of the induced costs of regulation?
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(D) the effect on consumers
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The primary purpose of deregulation is to
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(B) remove certain industries from old-line economic regulations
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The dilemma of deregulation is
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(B) to enhance competition within the industry without sacrificing applicable social regulations
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Which of the following industries has not been affected by deregulation
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(C) computer software
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Which of the following is not a role increasing government's complex relationship with business?
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(C) government cannot have buying power
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Which of the following is not a concern expressed by executives about government involvement in business?
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(D) US adults said government should do more
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The newer form of industrial policy is exemplified by
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(D) Robert Reich's book, "American Frontier"
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Arguments against privatization include all of these except
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(B) service provisions
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Which of the following is not an effect of induced costs?
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(B) new agencies may be created
