The new IO approach to antitrust is derived from the economics of modern industrial
organization.
Answer:
Government intervention to deal with market imperfections or failure may itself be
subject to a nonmarket failure.
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“If corruption is widespread in a country, then a firm should accept the functioning
system and act as domestic firms do”. This statement exemplifies cultural imperialism.
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The Dodd-Frank Act made suing an agency for fraud difficult by inhibiting investors to
bring lawsuits against credit rating agencies.
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Rule of law can override politics and political ties when doing business in emerging
market countries.
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Media coverage is essential to influencing the development of the public phase of a
crisis.
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When there are market imperfections, government intervention could improve its
efficiency.
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The Regional Greenhouse Gas Initiative (RGGI) was formed to operate a cap-and-trade
system for reducing greenhouse gases emissions.
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Being careless or sloppy with the facts is not sufficient for a finding of libel.
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The fundamental criticism of deontological systems is that they fail to explain why a
principle or right should be respected.
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With the rise in the powers of the EU institutions, the governments of the member states
have ceased to be the focus of nonmarket activity.
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Kant emphasized the “good” over the “right.”
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From the Coasean perspective, social efficiency is a problem only when there are no
impediments to bargaining.
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Microfinance, in its modern version, was introduced by Muhammad Yunus, a
Bangladeshi economist.
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Renewable energy production was dependent on subsidies because it was not cost
competitive.
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Chinese manufacturers with conventional photovoltaic technology set the cost standard
for the renewable energy industry.
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A leading video game console manufacturer requires dealers to carry only its products.
Considering all things constant, an antitrust suit may be filed against the manufacturer.
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A synergy is present between market and nonmarket strategies if a nonmarket action
increases the return from a market action.
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The pharmaceutical companies tend to seek visibility rather than covering their
activities through an association or other means.
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Ethics is an important foundation for the positive analysis of nonmarket issues.
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The principal form of damage awarded in liability cases is punitive damage.
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Congress passed the Credit CARD Act of 2009 to decrease the regulation of credit card
issuers.
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Population growth and economic growth are the two most important factors
contributing to the increase in greenhouse gas emissions.
Answer:
Institutions are not unitary bodies.
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Bribery involves transactions costs because both parties must conceal the payments and
take measures to justify the selection.
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Even though activists groups have access to the media, public institutions, and the
general public they do not have any standing before the courts to sue a firm.
Answer:
Contracts are governed by both common law and by statutes pertaining to particular
types of contracts and transactions.
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Confucianism is a consequentialist system of ethics that defines the good in terms of
human well-being and evaluates that well-being in terms of individuals’ preferences.
Answer:
The nonmarket activities of business and other interest groups are not monitored.
Answer:
The Kennedy Round of GATT negotiations incorporated provisions in Article VI
allowing domestic laws to include antidumping measures.
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Supply side considerations imply that the costs of organizing interests are low when the
costs of identifying and mobilizing those with common interests are high.
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Contracts make the mortgage lending market possible.
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A natural monopoly occurs if having more than one supplier would result in an
uneconomical duplication of facilities.
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The Qin dynasty lacked the technological expertise of its rivals.
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According to the U.S .Constitution, the Congress is not vested with the power “to
regulate commerce with foreign nations” and to “lay and collect duties.”
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The Securities Exchange Act made full disclosure unnecessary as a measure to protect
the privacy of the transacting parties.
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Intrinsic rights require extensive justification in terms of consequences.
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Which of the following is true with regard to ethics?
a) Ethics is a systematic approach to moral judgments based on reason, analysis,
synthesis, and reflection.
b) Issues involving direct mutual advantage require rigorous ethics analysis.
c) Ethics is based on political correctness and is mandated by the government or other
authoritative bodies.
d) Good ethics is always profitable.
Answer:
Which of the following portrays an avoidance strategy in a crisis management
program?
a) An oil exploration and petroleum company appoints a contractor to publish
advertisements explaining its packaging process to stakeholders.
b) A pharmaceutical company appoints a contractor auditor to assess the manufacturing
process.
c) A company appoints a knowledgeable spokesperson to inform the public about its
waste disposal mechanism.
d) A waste management company appoints a team of workers to reduce pollution of
nearby water sources.
Answer:
As social policy, antitrust laws are________.
a) concerned with the structure of markets
b) focused on protecting competition and by doing so to benefit consumers
c) concerned with concentrations of economic power and the potential for abuse
inherent in that concentration
d) concerned with the conduct of market participants
Answer:
Freedom House publishes an evaluation of ________.
a) personal autonomy and individual rights
b) trade freedom
c) government size
d) corruption index
Answer:
China took the lead in the production of solar panels primarily because ________.
a) labor costs in China were very low relative to that in Europe and the United States
b) the domestic demand for solar panels fell sharply
c) the price of pure silicon rose dramatically as supply caught up with demand
d) demand-side subsidization was not implemented in the United States
Answer:
Discuss the extent and effect of corruption in India.
Answer:
Confucius was responsible for initiating the central preoccupation of Chinese
philosophical thought: ________.
a) self-awareness
b) moral self-cultivation
c) individualism
d) hedonic living
Answer:
Which of the following is true with regard to the UK Bribery Act?
a) The UK Bribery Act legalizes “grease payments.”
b) The UK Bribery Act prohibits bribe paid to private companies.
c) Under the law, an employee cannot be held guilty of bribery if the person was
unaware of it.
d) The UK Bribery Act does not prohibit bribery of government officials,
Answer:
________ is the first component of a crisis management program.
a) Preparedness
b) Resolution
c) Avoidance
d) Reconciliation
Answer:
The central principle of the WTO agreements is embodied in which of the following
requirements?
a) most favored nation
b) reform-friendly state
c) developed nation
d) democratic free state
Answer:
The Congress exerts great influence on the regulatory agencies by ________.
a) using its budgetary and oversight authorities
b) appointing the regulatory agencies administrators
c) using the Office of Management and Budget (OMB)
d) delegating policymaking to agencies
Answer:
Corporate participation in political activities ________.
a) can give voice to people whose interests might otherwise be unrepresented
b) always leads to over-representation of interests
c) does not advance public interest
d) cannot be aligned with the interests of activist groups
Answer:
Which of the following is true for the news media when treating issues?
a) It can advocate a course of action for the issue.
b) It can take a biased stand in its assessment of the issue.
c) It need not take into account the potential ramification of covering the issue.
d) It should not interpret facts and events of the issue.
Answer:
Court awards of damages take place ex post, and anticipation of those awards provides
ex ante incentives to fulfill promises, while leaving the flexibility to breach contracts
when it is efficient to do so. The parties to a contract may also write into the contract
contingencies in the event of breach. This liquidated damages approach is ex ante and is
based on the principle that ________.
a) damages are intended as penalties for particular actions
b) damages should not be limited to compensation for harm
c) more complete contracts can be more efficient
d) the misuse of a product should be anticipated in advance
Answer:
________ is/are revised frequently as a function of the salience of the issues in the
market and nonmarket environments.
a) The vision of the organization
b) Core principles
c) Organizational values
d) Strategies and practices
Answer:
According to the Confucian ideal of hierarchical relations, households were expected to
defer to the ________ on nonhousehold matters.
a) state
b) family heads
c) head of the clan
d) religious leaders
Answer:
Positioning is often perilous. Which of the following companies had been lobbied
heavily to increase its commitment to its own causes?
a) Xerox
b) GM
c) Microsoft
d) Starbucks
Answer:
Which of the following is used to measure corporate environmental, social, and
financial performance?
a) triple bottom line
b) placebo treatment
c) Kant’s categorical imperative
d) casuistry
Answer:
If a firm makes a product that is hazardous when misused, and if
misuse can be anticipated, the firm can make decisions about safety features under a
________ standard.
a) casuistic
b) utilitarian
c) political
d) moral
Answer:
The EU operates under the principle of ________, which is the intention to accomplish
as much as possible at the level of the member states.
a) mutual recognition
b) subsidiarity
c) comitology
d) harmonization
Answer:
International concern about China’s human rights have centered on which of the
following?
a) the persecution of the aged
b) persecution of religious minorities
c) the increasing economic inequities in the Chinese society
d) the increasing rate of unemployment and underemployment
Answer:
Which of the following is difficult to assess in the process of decision making by firms
and managers?
a) motivation
b) environmental policies
c) workers rights
d) legal statutes
Answer:
Which of the following is true of slander?
a) It requires a showing of actual damages.
b) It is not protected under any state law.
c) It pertains to statements that are either written or broadcast.
d) It does not apply to statements made to third parties.
Answer:
The nonmarket strategies focus on adaptation to change during which of the following
stages in the nonmarket issue life cycle?
a) interest group formation
b) legislation
c) administration
d) enforcement
Answer:
Under the structural or traditional approach, collusion in concentrated industries
_____________.
a) is possible with repeated encounters
b) is difficult to enforce
c) increases profits
d) reduces efficiency
Answer:
Which of the following is true of business groups in emerging market countries and
a) political relationships can become a liability during regime changes
b) relying on political relationships reduce risks
c) firms with strong political relationships rely more on global financial markets
d) firms with strong political relationships have higher transparency
Answer:
Which of the following is the first step in addressing social pressure from activist
groups?
a) understand the broader public support for activist group’s agenda
b) identify relevant interest groups and activist organizations in a company’s market and
nonmarket environments
c) assess how the media is likely to cover and treat the issue
d) partner with activist groups
Answer:
The major focus of the third phase of regulation in the 1960s was ________.
a) labor and economic regulation
b) economic deregulation
c) political regulation
d) social regulation
Answer:
The sector in which there has been the greatest distortion in trade is ________.
a) transportation
b) iron and steel
c) heavy machinery
d) agriculture
Answer:
Which of the following is true with regard to rights?
a) Rights established by political choice do not reflect moral principles.
b) Rights established by the state can be publicly enforced.
c) Freedom of speech and assembly are positive rights.
d) As a rule, rights established by private agreements are invalid.
Answer: