The advantage of civil law is that it can adjust to changing circumstances without
having to wait for new statutes to be enacted by legislation.
Answer:
The antitrust policy is the centerpiece of competition policy, and this section addresses
EU antitrust law and its administration.
Answer:
In the Wilson-Lowi Matrix, when the benefits are widely distributed and the harm is
concentrated, those bearing the harm have a weaker incentive to take nonmarket action
than do the beneficiaries.
Answer:
For consumer industries, CFP is negatively correlated with CSP, whereas for industrial
industries it is positively correlated with CSP.
Answer:
The low quality of private schools led to higher-income families sending their children
to public schools.
Answer:
The standard of human well-being and the need to consider the consequences for all
persons correspond to fundamental ethical intuitions.
Answer:
Greater scrutiny by NGOs and social activists strengthen the audience effects, giving
firms incentives to be more socially responsible.
Answer:
The supply side information summarized in the distributive politics spreadsheet for
each interest includes the available substitutes, the aggregate benefits, and the per capita
benefits for individual members of the interest group.
Answer:
The focus of international trade policy through the 1960s was on tariffs.
Answer:
The larger the number of participants in a grassroots program and the more extensive
their coverage of political jurisdictions, the more effective it is likely to be.
Answer:
Trade policy does not depend on the market and nonmarket strategies of private
interests.
Answer:
The societal significance perspective places the news media in the role of a watchdog.
Answer:
The nonmarket environment is often more complex than the market environment,
because public institutions are complex and a larger set of interests participate.
Answer:
Only firms that have experienced a crisis take measures to reduce the likelihood of a
crisis, formulate management preparedness plans, or develop crisis response plans.
Answer:
Social pressure results from private and public politics and is directed to selected firms
and industries.
Answer:
Behavioral ethics experiments conclude that socialization through the sharing of
information about how others behave can strengthen a reciprocity norm.
Answer:
The EU’s consultation procedure is used for decisions pertaining to the admission of
new member states, international agreements, and the structure of the European Central
Bank.
Answer:
A defendant in a defamation case cannot use the truth defense if the statement was
written or published in any form.
Answer:
In a cap-and-trade system, companies are charged hefty fees for the permits.
Answer:
Formal ties in the Chinese bureaucracy are often referred to as guanxi.
Answer:
Root cause analysis involves the identification and analysis of the effects of a crisis.
Answer:
Renewed confidence in markets and the failure of socialist economic systems spurred a
wave of privatization in both developed and developing countries.
Answer:
Lobbyists are required to report the fees they receive as well as their expenditures.
Answer:
Interested parties can participate in both formal and informal rule-making proceedings
but are unable to attempt to influence agency actions outside the proceedings.
Answer:
The U.S. government provided subsidization on both the demand and supply sides of
the market for renewable power.
Answer:
A firm that decides to enter a country that has erected trade barriers requires only a
simple market strategy.
Answer:
The more intense is private politics, the more important is the nonmarket strategy.
Answer:
Products liability cases that are consolidated into class action lawsuits, generally
increases the costs of litigation.
Answer:
Culture can be important, not only shaping the opportunities and risks in a country but
also for the likelihood that a company can implement its market strategy.
Answer:
Decisions made by the European Union are legally binding but pertain only to the
parties identified in the decision.
Answer:
Change in the nonmarket environment does not come from market forces.
Answer:
The Federal Trade Commission cannot initiate its own investigations of practices it
believes may violate antitrust laws.
Answer:
The European Union uses the precautionary regulation more readily than the United
States.
Answer:
It is clear that the customers at the bottom of the pyramid, those who lived on less than
$2 a day, are highly profitable.
Answer:
The separation of ownership from management and the resulting managerial discretion
means that Adam Smith’s market capitalism cannot coexist with managerial capitalism.
Answer:
The market perspective of Friedman leaves unresolved a number of issues about the
role of business in society.
Answer:
The long-run sustainability of competitive advantage requires managing effectively in
the nonmarket environment.
Answer:
China is not a member of the World Trade Organization, which puts it at a great
disadvantage.
Answer:
Strategy formulation in the nonmarket environment is similar to its counterpart in the
market environment.
Answer:
Vote recruiting is a majority-building strategy.
Answer:
Social efficiency is attained when ________.
a) aggregate well-being is minimal
b) aggregate economic inequities are maximal
c) aggregate well-being is maximal
d) aggregate costs negative externalities are maximal
Answer:
Which of the following represents strategy formulation in a nonmarket issue?
a) A firm hires a law firm to provide advice on energy subsidies and emission taxes.
b) A firm designates a manager to engage in lobbying for energy subsidies in
Washington.
c) A firm identifies that the energy subsidy and emission tax issue will be pursued with
the state government and then at the national level.
d) A firm forms an ad hoc coalition with U.S. companies that require energy subsidies.
Answer:
________ is/are made in writing by the producer and, as part of the sales agreement,
represent(s) obligations binding on the producer.
a) Privity of contract
b) Implicit guarantees
c) Express warranties
d) Writs of assistance
Answer:
The fair trade movement began in ________.
a) Australia
b) the United Kingdom
c) the United States
d) the Netherlands
Answer:
The most consistent conclusion from the experiments for ethical conduct and
management in the nonmarket environment is that ________.
a) firms that allow managers to decide unilaterally and solely according to their
individual preferences are more stable than those that do not
b) monitoring of firms by stakeholders and other parties tends to decrease the moral
cost of violating ethics standards
c) people differ in their behavior, preferences, and moral conduct
d) transparency increases social distance
Answer:
________ involves actions by the company or government to deal with the crisis and
provide assistance to victims.
a) Resolution
b) Escalation
c) Identification
d) Intervention
Answer:
Cap-and-trade systems are also called ________.
a) market systems
b) governmental systems
c) life-expectancy systems
d) tradable permits systems
Answer:
The competitive theory of international trade is based on the ________.
a) budget deficits accumulated over a period of time
b) trade deficits accumulated over a period of time
c) gains from trade
d) rate of investments
Answer:
According to the audience interest/societal significance continuum, which of the
following would get the most coverage with position taking and advocacy?
a) issues on corruption
b) issues on poverty
c) issues on sports
d) issues on environmental protection
Answer:
The Clean Air Act Amendments of 1990 addressed efficiency through a tradable
permits system and the distributive consequences were addressed through a number of
special provisions called ________.
a) permits
b) allowances
c) incentives
d) credits
Answer:
A fundamental problem with utilitarianism is its ________.
a) apathy toward maximizing aggregate utility
b) incompatibility with altruism and philanthropy
c) difficulty with making interpersonal comparisons of utility
d) inability to judge moral good in terms of consequences
Answer:
The punitive damages system has been criticized because ________.
a) punitive damages awards are governed neither by statute nor clear constitutional
guidelines
b) the juries are not free to address punitive damages as they see fit
c) the legal standard for imposing punitive damages is lower than that for compensatory
damages
d) punitive damages are bound by many constitutional limits
Answer:
According to Confucian ethics, ________.
a) self-cultivation sought a solution to social conflict in defining, limiting, and
guaranteeing the rights and interests of the individual
b) self-cultivation sought a solution to social conflict in the balance of power and
interests between individuals
c) the society is the ideal setting for moral self-cultivation
d) self-cultivation sought the solution to social conflict from the self-sacrifice of the
individual for the preservation of the group.
Answer:
When an entitlement is protected by ________, a person may infringe the entitlement
but must compensate its holder for the objectively assessed harm resulting from that
infringement.
a) a property rule
b) a liability rule
c) a norm
d) canon law
Answer:
Nonmarket analysis involves ________.
a) assessing the industry cost structure
b) analyzing the financial statements of the firm
c) identifying distribution channels
d) assessing institutional characteristics
Answer:
Some managers argue that bribes are required because of extortion by government
officials or bribes offered by competitors. In such cases, the injustice standard is
applicable and requires that the manager ask whether, ________.
a) if the payment were publicly disclosed, the publics in the host and home country
would agree that it should have been paid
b) if the payment increased aggregate utility
c) if a fraction of the payment were used in charitable purposes
d) if the payment were made in response to a competitor’s payment and if it positively
impacted the annual revenue
Answer:
After World War II, the reductions in trade barriers were primarily the result of which
country’s dominance?
a) Great Britain
b) China
c) USSR
d) the United States of America
Answer:
The ________ is the principal legislative institution of the European Union.
a) European Commission
b) Court of Justice
c) Council of Ministers
d) European Parliament
Answer:
The ________ forced banks to separate their commercial banking and investment
banking businesses.
a) Glass-Steagall Act of 1933
b) Consumer Protection Act of 2010
c) Securities Act of 1933
d) Securities Exchange Act of 1934
Answer:
Utilitarianism and ________ are equivalent only if private well-being and societal
well-being are aligned.
a) casuistry
b) philanthropy
c) altruism
d) self-interest
Answer:
The process of ________ has resulted in sustained high levels of growth in the
economy and helped make India an important world player.
a) central planning
b) liberalization
c) nationalization
d) privatization
Answer:
GlObe-dOt is a leading manufacturer of information display systems based in
California. It seeks uniform federal regulation to impose a carbon emission tax on all
manufacturing firms. This is an example of ________.
a) natural monopoly
b) rent-seeking theory
c) capture theory
d) moral hazard
Answer:
________ in its strongest form means that in operating internationally a firm maintains
the standards of its home country and judges others by those standards.
a) Ethical leadership
b) Paternalism
c) Cultural imperialism
d) Cultural relativism
Answer:
Which of the following is true about the antitrust law of the European Union?
a) The EU law allows defenses, such as economic consequences, not explicitly provided
for under United States law.
b) Article 101 of the TFEU deals with unilateral actions.
c) Article 102 of the TFEU refers to group activities that may limit competition or
constitute a barrier to trade among member states.
d) The basic antitrust law of the European Union is found in Sections 1 and 2 of the
Sherman Act.
Answer:
The Lobbying Disclosure Act of 1995 ________.
a) requires lobbyists to report the fees they receive as well as their expenditures
b) restricts the contacts of former executive branch officials and regulators with their
former agencies for a 2-year period
c) prohibits officials who were involved in international trade or negotiations from
lobbying their former offices for 1 year.
d) does not require registration of those who lobby the executive branch or the staffs of
Congress members
Answer:
Distributive justice is concerned with ________.
a) the distribution of the rewards and burdens of social interactions
b) determining how individuals should be compensated for the harm done by others
c) punishment for actions that are contrary to a moral rule or societal well-being
d) the distribution of goods in society in a fair and equitable manner
Answer:
The fourth period of major regulatory change which started in the 1970s focused on the
________.
a) introduction of social regulation
b) introduction of economic deregulation to several industries
c) extension of regulation to labor markets and industries
d) regulatory bodies at the state level and extension to federal level
Answer:
The structure of Wall Street compensation was criticized on the ground that ________.
a) the current cash bonus system discouraged risk-taking in the financial system
b) the compensation for bankers and traders on Wall Street included a nominal annual
bonus
c) the current cash bonus system provided strong incentives for short-term performance
but weak incentives for long-term performance
d) deferred incentive compensation with a higher base salary multiplied “material risk”
on the bank
Answer:
In the United States this duty, the societal perspective view of news media is recognized
in the _____, which protects the news media in its role of providing information to
people.
a) Fifth Amendment
b) First Amendment
c) Second Amendment
d) Ninth Amendment
Answer:
In 1999, the European Union enacted a ________ that made criminal offenses of active
bribery and passive bribery (extortion) that gives any “undue advantage” of domestic
and foreign public officials and of private sector personnel.
a) Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions
b) Criminal Law Convention on Corruption
c) The Cummins’s Act
d) Foreign Corrupt Practices Act
Answer:
The products liability system has been criticized on equity, distributive, and efficiency
grounds. The equity arguments often express a belief that ________.
a) state-of-the-art design should not be an acceptable defense in cases governed
by strict liability
b) damages awarded for pain and suffering should ideally be guided by legal standards
c) the awards in many cases are insufficient and should be made significantly
larger to compensate for actual losses
d) cases should be decided on the basis of fault and negligence
Answer: