1 Government is needed to deal with social and environmental ills and to prevent business
from doing harm to society.
(A) True
(B) False
2 A bill can be stopped at any stage of the process, and one tactic used to delay or stop a vote
is the ________.
(A) committee breaker
(B) stopping action
(C) pivotal voting
(D) filibuster
(E) framing
3 Which statement about the legislative stage business should focus on to influence
lawmaking and who should be the strategic focus is not correct?
(A) Business focuses on the floor action stage private voting members.
(B) Business focuses on the conference action stage pivotal voting members.
(C) Business focuses on the conference action stage majority voting members.
(D) Business focuses on the committee action stage pivotal voting members.
(E) Business does not focus on any part of the government process.
4 Which of the following is not a law regarding labor legislation?
(A) The U.S. Foreign Corruption Act of 1977
(B) The Fair Standards Act of 1938
(C) The Worker Adjustment Retraining Notification Act (WARN) of 1988
(D) The Occupational Safety and Health Administration (OSHA) Act
(E) Employee Polygraph Protection Act of 1988
5 Message ________ refers to the terms used to gain public sentiment for one’s side of an
issue.
(A) articulation
(B) sequestering
(C) dissemination
(D) forming
(E) framing
6 Firms will engage in political strategies when the government significantly affects their
business. Which of the following is not affected by these strategies?
(A) large firms
(B) those highly dependent on government regulation
(C) small firms with little regulation
(D) those highly dependent on government contracts
(E) those operating in more highly concentrated industries
7 Which statement about political campaign contributions is not true?
(A) Politicians are not indebted to large donors, and as a result, do not influence regulations or
the enactment of bills into law.
(B) Political action committees (PACs) are company-sponsored methods of obtaining campaign funds from
employees and distributing the funds to candidates.
(C) Hard money is a direct contribution to a candidate’s political campaign.
(D) Soft money is a contribution to a political party committee for use in party-building activities.
(E) Businesses can encourage their employees and stockholders to register and vote but may not
recommend how they should vote.
8 Which statements about the branches of the federal government are correct?
(A) The legislative branch, which makes the laws, includes Congress (the Senate and the House
of Representatives).
(B) The executive branch includes the President and Cabinet departments.
(C) The regulatory branch includes agencies that enforce the laws.
(D) The judicial branch includes the courts that determine the constitutionality of laws, interpret their
meaning, and conduct trials.
(E) The judicial branch includes courts that judge executive actions to be unconstitutional though the
power of judicial review.
laws.
9 Which statements about public policy are true?
(A) Fiscal policy determines the supply, demand, and value of our U.S. currency.
(B) Industrial policy directs resources to the development of specific industries.
(C) Taxation policy changes tax rates to encourage or discourage spending.
(D) Trade policy encouraging or discouraging international trade with specific countries.
(E) Government economic policies make only a small impact on economic development.
10 The government provides billions of dollars to individuals, often called _______ including
welfare, medical care, and social security.
(A) federal loans
(B) escrows
(C) entitlements
(D) subsidies
(E) transfer payments
11 Which of the following are part of the legislative process?
(A) Committee action
(B) Floor action
(C) Conference
(D) Veto by the president
(E) Hearing from the Supreme Court
12 Which of the following are true regarding legislative committees?
(A) Committees specialize in different issue areas, such as budget or small business, and are
made up of small groups of senators or representatives.
(B) All bills eventually make it to the committee stage.
(C) The committee may decide the bill is unnecessary and table it, thus killing it at once.
(D) The subcommittee sends the bill with amendments back to the full committee where more hearings
and revisions may take place, and a full committee vote is taken.
(E) Subcommittees are used to kill bills that are not deemed worthwhile.
13 Which statements about political information strategies and message framing are true?
(A) Politicians’ primary concern is getting reelected and serving their constituent voters.
(B) Political information strategies focus on how the business side of the issue will benefit politicians and
their constituents.
(C) Businesses give information containing facts and figures using outside sources, experts, and
stakeholders’ support to inform the politician of the consequences of future public policy.
(D) Message framing is important to a business because the terms it uses to tell its side of an issue
influence public sentiment for or against the firm.
(E) Researchers find that firms are most likely to engage in political strategies when the government
significantly affects their business
14 Describe how the federal government is structured.
Answer:
15 Explain the relationship between federal laws and regulation.
Answer:
16 Discuss two types of public policy.
Answer:
17 Describe what happens during committee action to bring forth passage of a bill.
Answer:
18 Identify the legislative stage business should focus on to influence lawmaking and who
should be the strategic focus.
Answer:
19 Which statement accurately describes how a bill becomes a law?
(A) Committee action, Floor action, vote by both chambers, goes to the President. If vetoed,
Congress can override veto with a majority of both chambers.
(B) Committee action, Floor action, Conference action, vote by both chambers, goes to the President. If
vetoed, Congress can override veto with two-thirds of both chambers.
(C) Committee action, Conference action, vote by both chambers, goes to the President. If vetoed,
Congress can override veto with two-thirds of both chambers.
(D) Committee action, Floor action, Conference action, vote by both chambers, goes to the President. If
vetoed, Congress can override veto with a majority of both chambers.
(E) None of these is correct.
20 Which of the following is not counted among the powers of Congress?
(A) Create laws
(B) Override presidential veto
(C) Amend the Constitution with two-thirds of the states’ approval
(D) Hear international lawsuits between the United States and other countries.
(E) Confirm Presidential appointments
21 _______ policy focuses on the well-being of citizens to solve societal problems.
(A) Trade
(B) Taxation
(C) Fiscal
(D) Congressional
(E) Social
22 Because companies don’t want the public to know about negative aspects of their products,
products are required by law to provide labels about product contents and warnings.
(A) True
(B) False
23 Rules are developed by regulatory agencies to implement laws passed by Congress.
(A) True
(B) False
24 The Supreme Court signs statutes into law.
(A) True
(B) False
25 Once the president proposes the national federal budget, it immediately goes into law.
(A) True
(B) False
26 Businesses is a centralized, one-stop platform to make it easy for businesses to access
services to help them grow and hire.
(A) True
(B) False
27 Republicans are generally more liberal regarding moral issues and in favor of more
government regulation, more spending, and more taxation.
(A) True
(B) False
28 Congress does not have the power to impeach or remove any civil officer.
(A) True
(B) False
29 However, most bills that don’t get passed never make it past the committee stage.
(A) True
(B) False
30 The legislative process includes committee action; floor action; conference action; a vote by
both chambers; presidential approval; and, if vetoed, Congress.
(A) True
(B) False
31 The American Civil Liberties Union works to advance the fundamental principles of free-
market enterprise, limited government, and federalism at the state level through a nonpartisan
public-private partnership of America’s state legislators, members of the private sector and the
general public.
(A) True
(B) False
32 Many federal laws have been passed that have affected businesses.
(A) True
(B) False
33 Stakeholders have gained less power over business over time.
(A) True
(B) False
34 The prisoners’ dilemma is a situation in which if one competitor uses a strategy to gain an
advantage, the others must follow, even when all lose.
(A) True
(B) False
35 The ________ gives federal laws precedence over state laws.
(A) Bill of Rights
(B) legislative process
(C) supremacy clause
(D) lobbying coalition
(E) Continental Congress
36 A ________ monopoly occurs when one large business can supply the entire market more
efficiently and cheaply than several small firms due to economies of scale.
(A) clear-cut
(B) mitigating
(C) economical
(D) efficient
(E) natural
37 Which statement describes the role of Congress in how business rules are made and
enforced?
(A) Congress passes statutes and delegates the responsibility of writing the rules to regulatory
agencies with the power to enforce the rules.
(B) Congress can determine if rules are constitutional, interpret rule meanings as they are applied to
business.
(C) Congress makes the rules and enforces them.
(D) Congress determines if rules are constitutional, interpret their meaning and how they are applied, and
determine litigation for breaking the rule.
(E) Congress does not create regulatory agencies; the Executive Branch does that.
38 The ______ established the National Labor Relations Board (NLRB).
(A) Taft-Hartley Act
(B) Wagner Act
(C) Sarbanes-Oxley Act
(D) Securities and Exchange Act
(E) Clinton-Gore Act
39 Define political information strategies.
Answer: