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Chapter 08 - Business-Government Relations
Chapter 08
Business-Government Relations
1. Government and business together establish the regulatory rules under which business
operates in society.
True False
7. Monetary policies refer to policies that affect the supply, demand and value of the nation's
currency.
True False
8-1
Chapter 08 - Business-Government Relations
9. Economic regulations aim at modifying the normal operations of the free market and the
forces of supply and demand.
True False
11. Most experts can agree the government spending on U.S. regulatory activities will begin
to decrease by the early 2010s.
True False
14. Sometimes national leaders resist the notion of international regulation, seeking to control
matters of commerce themselves within their own countries.
True False
15. The chairman of the International Chamber of Shipping called on the United Nations to
loosen global emissions regulations for all vessels.
True False
8-2
Chapter 08 - Business-Government Relations
17. In 2009, the International Monetary Fund and the World Bank projected that the global
economic crisis would lead to losses:
A. Within the financial sector only.
B. Of more than $4 trillion in the value of stock and other assets.
C. That would prohibit governments from imposing any new regulations.
D. Of less than $4 million in the value of stock and other assets.
8-3
Chapter 08 - Business-Government Relations
23. 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.
24. 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.
25. The Mullahs in Iran is an example of the power of government derived from:
A. A monarchy.
B. A military dictatorship.
C. A religious authority.
D. A democracy.
8-4
Chapter 08 - Business-Government Relations
26. Governments being asked to ban the use of cell phones by drivers are examples of a
public policy:
A. Input.
B. Goal.
C. Effect.
D. Tool.
27. The National Safety Council estimate that motorists using cell phones are:
A. As safe as motorists who do not use cell phones.
B. Responsible for 6% of U.S. auto accidents each year.
C. Ten times more likely to crash.
D. More likely to contract ear infections.
8-5
Chapter 08 - Business-Government Relations
31. Patterns of government taxing and spending that are intended to stimulate or support the
economy are:
A. International standards policies.
B. Social assistance policies.
C. Fiscal policies.
D. Monetary policies
33. Policies that affect the supply, demand, and value of a nation's currency are:
A. International standards policies.
B. Social assistance policies.
C. Fiscal policies.
D. Monetary policies.
34. 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.
8-6
Chapter 08 - Business-Government Relations
40. An example of a regulatory agency charged with enforcing social regulation is:
A. Federal Aviation Administration.
B. Federal Trade Commission.
C. Federal Communications Commission.
D. Internal Revenue Service.
8-7
Chapter 08 - Business-Government Relations
45. In 2008 two new global regulations to reduce injuries from accidents by better safety
glazing of windows and mandating more geometric fitting head restraints in all vehicles were
adopted by the:
A. United Nations.
B. European Commission.
C. National Transportation and Safety Board.
D. World Forum for Harmonization of Vehicle Regulations.
8-8
Chapter 08 - Business-Government Relations
46. How do governments seek to cooperate with or work at arm's length with business? Does
it matter whether the government is legitimately elected or has illegitimately acquired power?
47. Define each key element of public policy process and provide an illustration or example
for each element.
48. Compare and contrast economic policies with social assistance policies.
49. Identify and compare the four reasons why governments turn to regulation as a way to
solve their problems.
8-9
Chapter 08 - Business-Government Relations
50. Government regulations come in different forms. Discuss the major types of government
regulations of business.
51. What could the United States government do about the out of control costs of regulation
and the staffing of regulatory agencies in the United States?
52. Why does international regulation occur? Discuss the conditions that affect the regulation
of business in a global context.
8-10
Chapter 08 - Business-Government Relations
1. (p. 173) Government and business together establish the regulatory rules under which business
operates in society.
FALSE
2. (p. 173) In Europe, unions are prohibited by law to be on businesses' administrative boards.
FALSE
3. (p. 174) A cooperative government-business relationship on one issue does not guarantee
cooperation on another issue.
TRUE
4. (p. 175) Public policy is a plan of action undertaken by business to influence the government.
FALSE
5. (p. 176) In non-democratic countries, the power of government may derive from a monarchy,
military dictatorship, or religious authority.
TRUE
6. (p. 178) Public policy effects are always unintended consequences of an action.
FALSE
8-11
Chapter 08 - Business-Government Relations
7. (p. 179) Monetary policies refer to policies that affect the supply, demand and value of the
nation's currency.
TRUE
9. (p. 182) Economic regulations aim at modifying the normal operations of the free market and
the forces of supply and demand.
TRUE
10. (p. 186) Cost-benefit analysis is often used to determine the costs of regulation.
TRUE
11. (p. 187) Most experts can agree the government spending on U.S. regulatory activities will
begin to decrease by the early 2010s.
FALSE
14. (p. 189) Sometimes national leaders resist the notion of international regulation, seeking to
control matters of commerce themselves within their own countries.
TRUE
8-12
Chapter 08 - Business-Government Relations
15. (p. 190) The chairman of the International Chamber of Shipping called on the United Nations
to loosen global emissions regulations for all vessels.
FALSE
Difficulty: Easy
17. (p. 171) In 2009, the International Monetary Fund and the World Bank projected that the
global economic crisis would lead to losses:
A. Within the financial sector only.
B. Of more than $4 trillion in the value of stock and other assets.
C. That would prohibit governments from imposing any new regulations.
D. Of less than $4 million in the value of stock and other assets.
Difficulty: Easy
18. (p. 173) 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.
Difficulty: Medium
8-13
Chapter 08 - Business-Government Relations
Difficulty: Medium
Difficulty: Medium
21. (p. 174) 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.
Difficulty: Hard
Difficulty: Easy
8-14
Chapter 08 - Business-Government Relations
23. (p. 175) 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.
Difficulty: Medium
24. (p. 176) 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.
Difficulty: Hard
25. (p. 176) The Mullahs in Iran is an example of the power of government derived from:
A. A monarchy.
B. A military dictatorship.
C. A religious authority.
D. A democracy.
Difficulty: Medium
26. (p. 176) Governments being asked to ban the use of cell phones by drivers are examples of a
public policy:
A. Input.
B. Goal.
C. Effect.
D. Tool.
Difficulty: Easy
8-15
Chapter 08 - Business-Government Relations
27. (p. 176) The National Safety Council estimate that motorists using cell phones are:
A. As safe as motorists who do not use cell phones.
B. Responsible for 6% of U.S. auto accidents each year.
C. Ten times more likely to crash.
D. More likely to contract ear infections.
Difficulty: Easy
Difficulty: Medium
Difficulty: Easy
Difficulty: Hard
8-16
Chapter 08 - Business-Government Relations
31. (p. 178 - 179) Patterns of government taxing and spending that are intended to stimulate or
support the economy are:
A. International standards policies.
B. Social assistance policies.
C. Fiscal policies.
D. Monetary policies
Difficulty: Medium
Difficulty: Medium
33. (p. 179) Policies that affect the supply, demand, and value of a nation's currency are:
A. International standards policies.
B. Social assistance policies.
C. Fiscal policies.
D. Monetary policies.
Difficulty: Medium
34. (p. 179) 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.
Difficulty: Hard
8-17
Chapter 08 - Business-Government Relations
35. (p. 180) The primary way of accomplishing public policy is through:
A. Waiting for businesses to act.
B. Lobbying Congress.
C. Regulation.
D. Writing your politician.
Difficulty: Easy
36. (p. 181) Which of the following are examples of natural monopolies?
A. Electric utilities and railroads.
B. Cable television and the media.
C. Internet services and trucking.
D. None of the above.
Difficulty: Hard
Difficulty: Hard
Difficulty: Medium
8-18
Chapter 08 - Business-Government Relations
39. (p. 185) Which of the following is not an example of a social regulatory agency?
A. Consumer Product Safety Commission.
B. Equal Employment Opportunity Commission.
C. National Highway Traffic Safety Administration.
D. National Labor Relations Board.
Difficulty: Hard
40. (p. 185) An example of a regulatory agency charged with enforcing social regulation is:
A. Federal Aviation Administration.
B. Federal Trade Commission.
C. Federal Communications Commission.
D. Internal Revenue Service.
Difficulty: Hard
Difficulty: Medium
Difficulty: Easy
8-19
Chapter 08 - Business-Government Relations
Difficulty: Hard
Difficulty: Medium
45. (p. 189) In 2008 two new global regulations to reduce injuries from accidents by better safety
glazing of windows and mandating more geometric fitting head restraints in all vehicles were
adopted by the:
A. United Nations.
B. European Commission.
C. National Transportation and Safety Board.
D. World Forum for Harmonization of Vehicle Regulations.
Difficulty: Hard
8-20
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Ja sen teki hän sellaisella äänellä kuin tahtoisi näyttää, miten
vähät hän välittäisi Rassmannista, kun vain saisi uuden puvun.
"Mitä, eikö hän tahtonut sitä tehdä? Kaunis, arvoisa neitiseni, onko
se tosiaankin mahdollista? (Suuri vallankumouksellinen saattoi
olosuhteiden mukaan esiintyä hienostikin.) Tämä patruuna, se on
myös niitä miehiä, jotka aina ajattelevat vain itseään! Mikä
halpamaisuus! Mutta älkää itkekö, kaunis neiti (hän laski
käsivartensa tämän vyötärölle), älkää itkekö. Te saatte kyllä
tyydytyksen. Panen miehen muistiin. Tuomioistuin ei tee eroa
henkilöissä, kun on kysymyksessä vapaiden kansalaisoikeuden
puolustaminen. Rauhottukaa, kansatar. Te saatte kyllä tyydytystä.
Mahdollisesti kutsutaan konventti kokoon."
Hän jatkoi:
Vaikka hän oli jo siitä päivästä, jona hän astui nuoren mestarin
taloon, hautonut nuoreen rouvaan nähden kaikenlaisia mietteitä,
jotka silloin tällöin sattumatta vilahtavan salaman tavoin herättivät
kiellettyjä haluja, niin pukeutuivat nämä kauvan salaisuudessa
eläneet halut, jotka tähän asti olivat näyttäytyneet vain hiutuvissa
katseissa ja kiihtyneissä kasvojen ilmeissä, selvään muotoon:
Rassmann tavotteli avoimesti rouva Schornin suosiota.
Hän ei tuntenut hetkistäkään katumusta, että hän siten vei
petoksen ystäväänsä kohtaan huippuunsa — hän koetti etsiä
oikeutta siihen vapaan lemmenvalinnan opeista. Hän ei ajatellut
tuokiotakaan, että Schorn tahtoisi toisin, sillä: "Mikä on minun, se on
sinun".
"Minulle ei asia ole vielä aivan selvä, rakas Gustav, olen siitä paljo
kuullut, mutta vähän lukenut", sanoi nuori mestari… "Voihan
Hannakin siitä hieman kuulla?" kysyi hän miltei epäröiden.
Rouva Schorn oli jo noussut ja silmäili maahan puoleksi hämillään.
"Mutta miksei rouvasi voisi sitte siitä kuulla? Juuri naisia koskee
asia lähimmin. Juuri heille on se hyvä työ ja heitä on tutustutettava
siihen joka tilaisuudessa, jotta olisimme heidän avustaan
varmemmat ja saisimme heidät mukaan liikkeeseen. Sillä kuten
tiedät on aatteidemme toteuttaminen mahdoton ilman naisten apua."
Hanna Schorn ei tosin tiennyt itse, mistä se tuli, että hän nyt
tuontuostakin tuli oikulliselle tuulelle, jota hänen miehensä ei ollut
ennen huomannut hänestä koskaan; että hän useammin oli
taipuvainen sureksivaan mietiskelyyn, ja että hänet lopulta valtasi
eräänlainen tyytymättömyys, eräänlainen alakuloisuus, jota hän ei
parhaalla tahdollaankaan voinut selittää.
Tämä piti yhä kiinni uusista tavoistaan ja jäi yhä edelleen iltaisin
kotiin, niin usein kuin sen vain hänelle sallivat hänen
valheverkkonsa, jotka hän yhä asetti "klubin" yhteyteen.
Sitte sanoi hän, ettei hänellä ollut aikaa; hänen täytyi vielä
välttämättä sorvata pari pulikkaa. Rassmann tiesi sen; hän edellytti
juuri sitä mitä nyt oli tuleva.
"Mutta ota toki Hanna mukaan, hän näkee yleensä niin harvoin
sellaista. Voittehan mennä niin usein kuin tahdotte. Ettemme ole sitä
ennen ajatelleet! Sitte annetaan seurahuoneella säännöllisesti
konsertteja, niissä voitte myös käydä. Puhun heti siitä Hannalle."
Huvitukset alkoivat.