1 Quasi-official agencies are official executive agencies but are required by statute to publish
certain information on their programs and activities in the Federal Register.
(A) True
(B) False
2 ________ is considered the most important political strategy because more time, effort,
and resources are devoted to this than to any other political strategy.
(A) Deregulating
(B) Lobbying
(C) Protesting
(D) Testimony
(E) Social networking
3 When businesses work together by providing increased pressure on government to meet
their interests, giving business bargaining power, it is called ___________.
(A) coalition building
(B) testifying
(C) lobbying
(D) regulating
(E) free-riding
Answer: (A) coalition building
Feedback: The correct answer is coalition building.
4 The role of ________is to provide expert information to the government on proposed
regulations.
(A) interest group
(B) radical coalition
(C) paid registered lobbyists
(D) advisory panels and committees
(E) CEOs and CFOs
5 Advisory panels and committees are overseen by ________.
(A) the General Accounting Office
(B) the Federal Oversight Administration
(C) various advisory panels
(D) Political Action Administration
(E) General Services Administration
6 Which of the following is not part of the organizational structure of the federal executive
branch of government?
(A) Executive Office of the president
(B) Independent agencies and government corporations
(C) Boards, commissions, and committees
(D) Quasi-official agencies
(E) The cabinet executive departments and their agencies
7 Which statements about the relationship among regulatory impact analysis, the Federal
Register, and www.regulations.gov is true?
(A) All new regulations require a regulatory impact analysis (RIA), which includes a statement
of the need for the proposed action, an examination of alternative approaches, and an evaluation of the
benefits and costs.
(B) The RIA ends up in the Federal Register, which is a daily journal publication of rules, proposed rules,
notices, and other public regulatory information.
(C) The Federal Register, the Regulations.gov website enables users to find, view, and comment on
regulations for all federal agencies.
(D) The Office of Information and Regulatory Affairs is a branch of the judicial branch of government.
(E) The goal of an RIA is to ensure that the regulation is really needed.
8 Which terms or definitions about regulation are true?
(A) Deregulation is the significant reduction in the regulation covering an industry.
(B) Cross-regulation occurs when one group of customers pays less than the cost and others pay more to
offset that loss.
(C) Cost-of-service regulation occurs when prices are regulated based on costs that are passed on to
customers, which reduces the incentive to keep costs down.
(D) Privatization is government allowing business to perform functions and services for it.
(E) The Reason Foundation advances a free society by developing, applying, and promoting conservative
principles largely held by the Republican party.
9 Which statements about business influencing Congress vs. regulatory agencies are not
correct?
(A) Business cannot contribute during presidential election campaigns.
(B) Business gives direct campaign contributions to members of Congress to help them get elected to
support business interests.
(C) Lobbyists cannot contact members of Congress to directly to influence legislation.
(D) Grassroots lobbying is having stakeholders contact Congress and regulators; with regulations,
businesses commonly ask stakeholders to make online comments supporting businesses’ side of the
specific rule.
(E) Lobbying regulators is similar except that there are some situations in which businesses can’t contact
regulators outside of public meetings.
10 Which of the following are not reasons businesses serve on advisory panels and
committees?
(A) Public volunteer service helps build a reputation for being socially responsible.
(B) Serving alerts business to proposed rules.
(C) Serving leads to the business writing rules to benefit the firm.
(D) Serving provides access to regulators who will listen to input that can influence the agency’s decision
to benefit business.
(E) Public volunteer service leads to an increase of lobbyists.
11 Name some benefits and costs of regulation.
Answer:
12 Define the Federal Register.
Answer:
13 What are seven ways Congress can provide oversight of regulators?
Answer:
14 Explain deregulation and why is it useful?
Answer:
15 What are four strategies a business has at its disposal for dealing with regulators?
Answer:
16 Which of the following is not true regarding societal, political, and legal strategies?
(A) Businesses are taking a stakeholder approach to dealing with societal issues.
(B) Business builds coalitions and works at developing good media relations in order to promote positive
stories and gain public sentiment for its side of issues.
(C) Regulators’ extensive impacts on business decision making have resulted in executives spending more
time developing nonmarket political strategies.
(D) Businesses rarely take a stakeholder approach to dealing with societal issues.
(E) Business uses legal strategies to avoid lawsuits, and business occasionally challenges rules through
due process.
17 Privatization and deregulation are in essence types of ________ to increase efficiencies in
government and the market environment.
(A) regulatory addenda
(B) cultural reform
(C) reasonable reform
(D) regulatory reform
(E) information strategies
18 ________allows business to challenge a rule by claiming that the agency did not follow the
APA procedures in making the rule.
(A) Legal procedure
(B) Substantive due process
(C) Procedural due process
(D) Electoral process
(E) Procedural mistake rule
19 The federal government budget is developed by the president’s office, which must be
approved by Congress.
(A) True
(B) False
20 President Obama’s health care reform bill was overwhelmingly approved by the Supreme
Court.
(A) True
(B) False
21 Business needs to anticipate changes in laws and regulations.
(A) True
(B) False
22 Congress creates regulatory agencies and writes the authorizing statutes for an agency to
develop and enforce laws.
(A) True
(B) False
23 Once a federal agency is created, it stays in place until repealed or disbanded with no action
necessary in the interim.
(A) True
(B) False
24 Cost-of-service regulation occurs when prices are regulated based on costs that are passed
on to customers, which reduces the incentive to keep costs down.
(A) True
(B) False
25 The terms privatization and deregulation can be used interchangeably.
(A) True
(B) False
26 Under the First Amendment to the Constitution, business has the right to petition
government, including regulators.
(A) True
(B) False
27 Businesses often work with each other to deal with issues, and peak and trade groups are
coalitions of businesses with similar interests joining in collective political action.
(A) True
(B) False
28 _______are the business rules of conduct, and the rules are developed by regulatory
agencies to implement laws passed by Congress.
(A) Reservations
(B) Regulation
(C) Obligations
(D) Lobbying
(E) Privatization
29 The cabinet is part of the _________ .
(A) House of Representatives
(B) International Regulatory Office
(C) Federal Judicial courts
(D) Senate.
(E) executive office of the President.
30 “RIA” stands for
(A) Rural Integration Association
(B) Regulation and Impact Advisory
(C) Regulatory Impact Analysis
(D) Required Immediate Action
(E) Records and Inquiry Administration
31 President Obama’s health care overhaul, nicknamed Obamacare, carries the official name of
__________.
(A) Affordable Care Act
(B) Healthcare Reform Act
(C) Defer Hospital Expenses Act
(D) President Victory Act
(E) Cheaper Medical Expenses Act
32 Which of the following is the first step in the rule-making process?
(A) Congress writes the proposed rule.
(B) The agency revises and finalizes the rule.
(C) Regulatory agency writes a proposed rule.
(D) Agency enforces the rule.
(E) The rule is published in the Federal Register with OMB final approval.
33 What are four reasons to serve on advisory panels and committees?
Answer: