Chapter 08 – Business-Government Relations
1. (p. 173) Government and business together establish the regulatory rules under which business
operates in society.
2. (p. 173) In Europe, unions are prohibited by law to be on businesses’ administrative boards.
3. (p. 174) A cooperative government-business relationship on one issue does not guarantee
cooperation on another issue.
4. (p. 175) Public policy is a plan of action undertaken by business to influence the government.
5. (p. 176) In non-democratic countries, the power of government may derive from a monarchy,
military dictatorship, or religious authority.
6. (p. 178) Public policy effects are always unintended consequences of an action.
Chapter 08 – Business-Government Relations
7. (p. 179) Monetary policies refer to policies that affect the supply, demand and value of the
nation’s currency.
8. (p. 179) A national health care policy is an example of an economic policy.
9. (p. 182) Economic regulations aim at modifying the normal operations of the free market and
the forces of supply and demand.
10. (p. 186) Cost-benefit analysis is often used to determine the costs of regulation.
11. (p. 187) Most experts can agree the government spending on U.S. regulatory activities will
begin to decrease by the early 2010s.
12. (p. 188) Regulatory activity often is cyclical.
13. (p. 189) Regulation cannot be applied to international business behavior.
14. (p. 189) Sometimes national leaders resist the notion of international regulation, seeking to
control matters of commerce themselves within their own countries.
Chapter 08 – Business-Government Relations
15. (p. 190) The chairman of the International Chamber of Shipping called on the United Nations
to loosen global emissions regulations for all vessels.
16. (p. 170) Managers’ understanding of government regulations is:
Difficulty: Easy
17. (p. 171) In 2009, the International Monetary Fund and the World Bank projected that the
global economic crisis would lead to losses:
Difficulty: Easy
18. (p. 173) Government’s role is to create and enforce laws that:
Chapter 08 – Business-Government Relations
19. (p. 173) Governments hold the power to:
Difficulty: Medium
20. (p. 173 – 175) Around the world, government:
Difficulty: Medium
21. (p. 174) Cooperation between business and government often occurs when:
Difficulty: Hard
22. (p. 175) An example of an illegitimate government can be seen in:
Chapter 08 – Business-Government Relations
23. (p. 175) Public policy is a basic set of goals, plans and actions undertaken by:
Difficulty: Medium
24. (p. 176) Past decisions of the courts, the original basis for the U.S. legal system, are called:
Difficulty: Hard
25. (p. 176) The Mullahs in Iran is an example of the power of government derived from:
Difficulty: Medium
26. (p. 176) Governments being asked to ban the use of cell phones by drivers are examples of a
public policy:
Chapter 08 – Business-Government Relations
27. (p. 176) The National Safety Council estimate that motorists using cell phones are:
Difficulty: Easy
28. (p. 177) Public policy tools involve a combination of:
Difficulty: Medium
29. (p. 178) Public policy effects are:
Difficulty: Easy
30. (p. 178 – 179) Economic policies include:
Chapter 08 – Business-Government Relations
31. (p. 178 – 179) Patterns of government taxing and spending that are intended to stimulate or
support the economy are:
Difficulty: Medium
32. (p. 179) An example of an early economic public policy was:
Difficulty: Medium
33. (p. 179) Policies that affect the supply, demand, and value of a nation’s currency are:
Difficulty: Medium
34. (p. 179) By raising and lowering the interest rates at which private banks borrow money from
the government, the Federal Reserve Bank:
Chapter 08 – Business-Government Relations
35. (p. 180) The primary way of accomplishing public policy is through:
Difficulty: Easy
36. (p. 181) Which of the following are examples of natural monopolies?
Difficulty: Hard
37. (p. 181) Regulation can be argued as justified based on:
Difficulty: Hard
38. (p. 181 – 182) Economic regulations:
Chapter 08 – Business-Government Relations
39. (p. 185) Which of the following is not an example of a social regulatory agency?
Difficulty: Hard
40. (p. 185) An example of a regulatory agency charged with enforcing social regulation is:
Difficulty: Hard
41. (p. 186) Total social regulation costs are:
Difficulty: Medium
42. (p. 188) Deregulation is often:
Chapter 08 – Business-Government Relations
43. (p. 188) Deregulation has occurred in the following industries:
Difficulty: Hard
44. (p. 188) Reregulation is:
Difficulty: Medium
45. (p. 189) In 2008 two new global regulations to reduce injuries from accidents by better safety
glazing of windows and mandating more geometric fitting head restraints in all vehicles were
adopted by the:
Difficulty: Hard
46. (p. 173 – 175) How do governments seek to cooperate with or work at arm’s length with
business? Does it matter whether the government is legitimately elected or has illegitimately
acquired power?
Chapter 08 – Business-Government Relations
47. (p. 175 – 178) Define each key element of public policy process and provide an illustration or
example for each element.
48. (p. 178 – 180) Compare and contrast economic policies with social assistance policies.
49. (p. 180 – 181) Identify and compare the four reasons why governments turn to regulation as a
way to solve their problems.
50. (p. 181 – 186) Government regulations come in different forms. Discuss the major types of
government regulations of business.
Chapter 08 – Business-Government Relations
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51. (p. 186 – 189) What could the United States government do about the out of control costs of
regulation and the staffing of regulatory agencies in the United States?
52. (p. 189 – 190) Why does international regulation occur? Discuss the conditions that affect the
regulation of business in a global context.