Campaign contributions by businesses are not made to affect the outcomes of elections.
Answer:
The courts do not decide which rule is applicable on a case-by-case basis but instead
hold that certain practices are per se illegal and others are not.
Answer:
Mao Zedong’s economic reforms were headlined by the “Four Modernizations.”
Answer:
In the market environment, strategies are intermediated by public and private
institutions, whereas in the nonmarket environment, strategies are intermediated by
markets.
Answer:
Unless challenged by an activist group or NGO, specific issues of concern in a
company can be reserved for later.
Answer:
When there is competition among interests, as in the case of interest group politics, the
effectiveness of a strategy is independent of the strategies that others are pursuing on
the issue.
Answer:
Securitization involves pooling contractual debt obligations and issuing new securities
backed by those obligations.
Answer:
Money bills are the responsibility of the House of States.
Answer:
Cultural relativism in its strongest form holds that appropriate behavior in a country or
culture is determined by its own laws and customs
Answer:
The theory of comparative advantage implies that intervention by governments in
perfectly competitive domestic or international markets will increase aggregate
well-being.
Answer:
For emerging market countries strategies for influencing outcomes on issues often
involve the development of relationships with government officials. This provides a
setting for corruption, and vigilance is required to make certain that managers and
advisors do not succumb to temptation.
Answer:
In the nonmarket environment, legislation, regulation, administrative decisions, and
public pressure are the result of competition involving individuals, activists, interest
groups, and firms.
Answer:
EPA regulation has largely been command and control, in which uniform rules or
standards are ordered and then enforced.
Answer:
Casuistry is principled reasoning and is distinguished from ethics, which is an approach
to moral practice that seeks to balance competing considerations.
Answer:
All nonmarket issues pass through the five stages of the nonmarket issue life cycle.
Answer:
The Fifth and Fourteenth Amendments provide the authority for regulation.
Answer:
Bargaining is more complex and lengthy when the interests on an issue are poorly
aligned.
Answer:
The appropriability of returns in the music and film industries has been adversely
affected by the advancement of Internet and MP3 technology.
Answer:
The Securities Exchange Act established the Securities and Exchange Commission
(SEC) to regulate and police the markets and those who trade in them.
Answer:
In combining the two theories of intrinsic audience interest and social significance,
treatment depends more on audience interest while coverage depends more on social
significance.
Answer:
The statement, “Treat individuals always as autonomous ends, and so never solely as
means,” represents Kant’s formulation of the categorical imperative.
Answer:
The Calabresi and Melamed principles do not inquire which party is best positioned to
induce others to take actions that will improve the difference between social benefits
and social costs.
Answer:
Part of the difficulty in exposing corruption in India was the law which did not impose
penalties on the citizen making the payment.
Answer:
In addition to prohibiting bribery of government officials, the United Kingdom Bribery
Act prohibits bribes paid to private companies.
Answer:
In emerging market economies with underdeveloped capital and uncertain government
policies, business groups can provide efficiencies similar to those that can be achieved
through contracting in developed economies.
Answer:
Moral suasion cannot change the preferences of participants.
Answer:
Positioning in political space affects the opportunity to participate effectively in
lawmaking and rule-making processes.
Answer:
Firms seek federal regulations to avoid states imposing uniform regulations.
Answer:
Cooperative private politics is beneficial to a potentially vulnerable company.
Answer:
Campaign financing involves huge amounts of money and always affects the outcome
of elections.
Answer:
Organizational strategies serve as the core principles that guide the practices of the
company as it strives to achieve its goals.
Answer:
The EPA enforcement process requires the filing of a notice of a complaint and a
hearing before an administrative law judge.
Answer:
Compliance with the law is an essential guide for responsible management, but reliance
solely on the law is rarely sufficient.
Answer:
Nonmarket strategy is essential because in its absence competitors in the nonmarket
environment will influence the outcome of issues and shape the rules of the game to
their advantage.
Answer:
For the formation of an interest group, as long as the members share aligned interests it
is not necessary that the benefits from collective action exceed the costs of organization.
Answer:
The Smoot-Hawley Act of 1930 helped reduce the depth and duration of the Great
Depression by decreasing tariffs dramatically.
Answer:
Which of the following factors affects the costs of nonmarket action?
a) size of the interest groups and its coverage of legislative districts
b) per capita benefits for a union
c) increase in demand for a company’s products
d) creating substitutes closer to replicating the benefits
Answer:
Which of the following should a company follow when challenging activists?
a) avoid explanations to employees
b) file a lawsuit if the company can bear the social pressure
c) avoid negotiation
d) challenge the group after evaluating the issue
Answer:
Which of the following would have spurred a reaction from global financial markets,
reducing foreign direct investment?
a) a restriction on acquisitions
b) a ban on exports
c) a mandatory review conducted by the antitrust regulator
d) a decrease in protectionism
Answer:
Which of the following describes an activist group’s first-mover advantage?
a) frames an issue by identifying its societal significance
b) stages protests and demonstrations
c) uses low-cost source of information
d) uses social media to coordinate activities
Answer:
According to Adam Smith, the surest way to achieve societal well-being was to
________.
a) facilitate centralized decision making and allow the government to decide on behalf
of individuals
b) place resources in the hands of individuals and allow them to transact in markets
c) encourage public ownership of resources
d) rely on goodwill rather than profit incentives
Answer:
The European Union took two approachesharmonization and mutual recognitionto
remove internal barriers to trade. Harmonization refers to the ________.
a) formation of a single executive body to maintain the markets of member states
b) development of a single centralized administration
c) development of a common set of policies for all member states
d) synchronization of markets in Eurasia
Answer:
________ take(s) into account the benefits and costs of attaining environmental
objectives and achieve those objectives by aligning the social and private costs of
pollution and its abatement.
a) Life-expectancy approach
b) Supply-chain approach
c) Command-and-control regulations
d) Incentive approaches
Answer:
Which of the following is true of defamation charges?
a) It only protects individuals from defamation.
b) It protects both corporations and individuals from defamation.
c) It does not protect in cases where the statements made to third parties.
d) Defamation cases are completely governed by federal law in the U.S.
Answer:
What is just according to Nozick?
a) whatever is the result of the voluntary actions of individuals
b) whatever is the result of the actions of individuals held under duress
c) whatever is the result of the actions taken by individuals to benefit a person without
that person’s consent
d) whatever is the result of the actions that are lawful but not ethical
Answer:
Which of the following is true of risks in emerging markets?
a) Domestic risks arise from a broader range of factors than do foreign risks.
b) Risks in emerging markets can differ in magnitude and nature from those of
developed countries.
c) Risks are smaller in magnitude in emerging markets.
d) Risks are independent of the country of origin for foreign direct investment and
trade.
Answer:
The EPA administers the ________ for the cleanup of existing toxic waste disposal
sites.
a) Solid Waste Cleanup Fund
b) Superfund
c) Resource Conservation and Recovery Act of 1976
d) Toxic Substances Control Act of 1976
Answer:
A major achievement of the ________ Round was to establish the WTO
Dispute Settlement Body (DSB) to hear disputes and issue binding orders to resolve
them.
a) Doha
b) Uruguay
c) Kennedy
d)Tokyo
Answer:
The food market in India is complex and requires careful study because of ________
across the country.
a) social inequality
b political tension
c) economic disparity
d) religious traditions
Answer:
A ________ allows the recipient to restrict the use, reproduction, and distribution of
his/her work of original expression.
a) copyright
b) license
c) label
d) brand
Answer:
A firm that decides to enter a country that has open markets relies primarily on
________.
a) a nonmarket strategy
b) a market strategy
c) a communist economic strategy
d) a mercantile strategy
Answer:
Which of the following penalties is available in criminal cases?
a) injunctive relief
b) divestment of business units
c) dissolved contracts
d) fines
Answer:
Which of the following is true with regard to the securitization of mortgage loans?
a) The loans used to back the collateralized debt obligations (CDOs) have risks that
cannot be diversified.
b) In the securitization of mortgages, diversification cannot be achieved by pooling
mortgages for house purchases in different parts of the country.
c) The bank buying mortgage loans issues new securities referred to as collateralized
debt obligations (CDOs).
d) In constructing collateralized debt obligations (CDOs), cash flows from the
mortgages to the tranches reflect a spiral model.
Answer:
In China a huge number of people had moved from rural areas to cities and industrial
areas, but a similar mass movement has not yet occurred in India.
Answer:
Economic theory identifies the ________ as the objective that provides the strongest
incentives for efficiency.
a) maximization of social well-being
b) perpetuation of corporate ethics
c) maximization of shareholder value
d) consideration of morality
Answer:
A research experiment to understand individual choices in moral dilemmas is called
________ if the experimenters do not know which participants are in which roles.
a) treatment
b) double blind
c) anonymous
d) direct observation
Answer:
A group of activists organize a campaign to constrain the sale of a well-known brand of
clothing because of worker rights issues in its Vietnamese branch. Which of the
following strategies is applicable to the situation?
a) confrontational public politics
b) confrontational private politics
c) cooperative private politics
d) public nonmarket action
Answer:
Social responsibility focuses less on pressures and more on normative principles that
identify duties based on ________.
a) conceptions of well-being
b) conceptions of nonmarket challenges
c) maximizing shareholder value
d) maximizing profits
Answer:
Rapid economic growth produced a large and growing middle class in India.
Answer:
The third component of the control of an externality in a tradable permits system
________.
a) is allowing parties to respond to incentives by choosing the most efficient means of
abatement
b) involves providing incentives for abatement by internalizing the cost of the harm
done by the pollution.
c) involves reflecting in the prices of goods and services, the costs of abatement
and the social costs of the harm from the remaining pollution.
d) is allowing states to decide how best to decrease dangerous air pollution in the most
cost effective manner.
Answer:
Which of the following is true of credit rating agencies?
a) The credit rating agencies were prompt in recognizing the riskiness of the
mortgage-backed securities that were at the center of the financial crisis.
b) The credit rating agencies were widely criticized for failing to appreciate the risks
associated with the collateralized debt instruments.
c) Credit rating agencies are government-owned companies.
d) The ratings issued by the credit rating agencies have always been accurate in their
risk assessment.
Answer:
Certification to provide external legitimacy ________.
a) increases the vulnerability of a brand’s reputation
b) improves the public standing of a firm
c) increases social pressure on a firm
d) attracts more confrontational activists to the firms’ policies
Answer:
Which of the following approaches can aid in influencing regulatory agency decisions?
a) boycott
b) bribery
c) organizational learning
d) lobbying
Answer:
In natural monopoly, ________ is the economic inefficiency caused by the restriction of
output which raises product prices above its marginal costs.
a) moral hazard
b) deadweight loss
c) externalities
d) consumer surplus
Answer:
Governments often exercise considerable control over which of the following
industries?
a) consumer electronics
b) software
c) local telecommunications
d) automobile
Answer:
Which of the following is true of the societal significance perspective view of news
coverage?
a) It covers news based on the interest of the audience.
b) It functions on the premise that coverage increases with audience interest.
c) It treats its issue to appeal and retain its audience.
d) It reflects the news media’s role as providing information citizens need.
Answer:
After two decades of political activity by banks, the Glass-Steagall Act was repealed by
the ________.
a) Consumer Protection Act of 2010
b) Securities Exchange Act of 1934
c) Gramm-Leach-Bliley Act of 1999
d) Dodd-Frank Act of 2010
Answer:
The basis for ________ is the self-evident principle that what matters is human
well-being.
a) positivism
b) utilitarianism
c) fundamentalism
d) hedonism
Answer:
Which of the following refers to a set of rights to control a tangible or intangible thing?
a) Property
b) Norm
c) Contract
d) Tort
Answer:
Council decisions involving foreign and security policy require ________.
a) qualified majority
b) double majority
c) unanimity
d) partial consensus
Answer: