Question 1

Provide a short answer to each of these questions. Be sure to fully explain your answer.
-Is privatization always effective or successful? Give examples of a success and a failure.

Accepted Answer

Privatization is not always effective or successful. One example of a success would be Argentina's privatization of its national water system. The restructuring was both financially efficient and socially beneficial. Service expanded to reach areas which previously had no clean water, and far fewer children died from infections and parasitic diseases. On the other hand, when Mayor Daley of Chicago privatized 36,000 parking meters, prices quadrupled, and free parking on Sunday disappeared. The public backlash led other cities to shelve their plans to privatize their parking meters.

Question 2

The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government.

Accepted Answer

A) True 
 B)False

Question 3

The primary purpose of deregulation is to

Accepted Answer

A)   decrease competition in the affected industries.
B)   remove certain industries from old-line economic regulations.
C)   protect the natural environment.
D)   allow natural monopolies to form.

Question 4

Government is generally thought to follow the ethic of

Accepted Answer

A)   deontology.
B)   collectivism.
C)   individualism.
D)   socialism.

Question 5

Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.

Accepted Answer

A) True 
 B)False

Question 6

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
-Articulate a brief history of government's role in business.

Accepted Answer

While student answers will be variable i...

Question 7

Government intervention in business began with

Accepted Answer

A)   opening of settlements.
B)   a push for tariffs.
C)   governments giving of land grants.
D)   the creation of the Interstate Commerce Commission.

Question 8

The primary reason for government regulation of business is

Accepted Answer

A)   hypercompetition.
B)   central planning of the economy.
C)   market failure.
D)   lobbying efforts by business.

Question 9

The question of whether current public functions should be performed by the government or private sector is addressed by

Accepted Answer

A)   industrial policy.
B)   privatization.
C)   central planning.
D)   moral suasion. B

Question 10

Every form of state intervention that affects industry as a distinct part of the economy is called

Accepted Answer

A)   internationalization.
B)   globalization.
C)   industrial policy.
D)   privatization. C

Question 11

A strong industrial policy:

Accepted Answer

A)   is present in most developing countries.
B)   is a term heard continuously.
C)   is government intervention.
D)   helps firms compete in a fast-moving global economy.

Question 12

Government regulations have been criticized for all the following reasons except

Accepted Answer

A)   being too extensive.
B)   being too costly.
C)   being burdensome to business.
D)   being ineffective.

Question 13

Provide a short answer to each of these questions. Be sure to fully explain your answer.
-Discuss the reasons for the overlapping trends of regulation and deregulation.

Accepted Answer

The overlap of trends of regulation and ...

Question 14

Government influences business through all of the following nonregulatory methods except

Accepted Answer

A)   being a major employer.
B)   being a standard setter.
C)   requiring equal employment opportunities be granted to job applicants.
D)   providing transfer payments.

Question 15

In many ways the most controversial aspect of the government/business relationship is regulation.

Accepted Answer

A) True 
 B)False

Question 16

Government intervention in monopolistic industries is often brought about by

Accepted Answer

A)   requests from smaller competitors.
B)   class-action lawsuits.
C)   anticompetitive practices.
D)   frequent bankruptcies within the industries.

Question 17

The dilemma of deregulation is

Accepted Answer

A)   to enhance competition within the industry without harming workers' status.
B)   to enhance competition within the industry without sacrificing applicable social regulations.
C)   to prevent monopolies without allowing hypercompetition.
D)   to provide business more freedom without completely abandoning governmental authority.

Question 18

Which of the following industries has not been affected by deregulation?

Accepted Answer

A)   financial services.
B)   trucking
C)   computer software
D)   airline

Question 19

Direct costs of regulation are most visible when we look at the number of new agencies created, aggregate expenditures, and

Accepted Answer

A)   global influence.
B)   growth patterns.
C)   community response.
D)   resource spending.

Question 20

The clash of ethical systems between government and business is centered around

Accepted Answer

A)   growth and sustainability.
B)   economic goals and social welfare.
C)   individualist and collectivist ethics.
D)   privatization and federalization.

Exam 11: Business, Government, and Regulation.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Is privatization always effective or successful? Give examples of a success and a failure.

The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government.

Correct Answer
verified

The primary purpose of deregulation is to

Correct Answer
verified

Government is generally thought to follow the ethic of

Correct Answer
verified

Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.

Correct Answer
verified

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Articulate a brief history of government's role in business.

Correct Answer
verified
While student answers will be variable i...
View Answer

Government intervention in business began with

Correct Answer
verified

The primary reason for government regulation of business is

Correct Answer
verified

The question of whether current public functions should be performed by the government or private sector is addressed by

Correct Answer
verified
B

Every form of state intervention that affects industry as a distinct part of the economy is called

Correct Answer
verified
C

A strong industrial policy:

Correct Answer
verified

Government regulations have been criticized for all the following reasons except

Correct Answer
verified

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Discuss the reasons for the overlapping trends of regulation and deregulation.

Correct Answer
verified
The overlap of trends of regulation and ...
View Answer

Government influences business through all of the following nonregulatory methods except

Correct Answer
verified

In many ways the most controversial aspect of the government/business relationship is regulation.

Correct Answer
verified

Government intervention in monopolistic industries is often brought about by

Correct Answer
verified

The dilemma of deregulation is

Correct Answer
verified

Which of the following industries has not been affected by deregulation?

Correct Answer
verified

Direct costs of regulation are most visible when we look at the number of new agencies created, aggregate expenditures, and

Correct Answer
verified

The clash of ethical systems between government and business is centered around

Correct Answer
verified

Exam 11: Business, Government, and Regulation.

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Is privatization always effective or successful? Give examples of a success and a failure.

The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government.

Correct AnswerverifiedShow Answer

The primary purpose of deregulation is to

Correct AnswerverifiedShow Answer

Government is generally thought to follow the ethic of

Correct AnswerverifiedShow Answer

Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.

Correct AnswerverifiedShow Answer

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it. -Articulate a brief history of government's role in business.

Correct AnswerverifiedWhile student answers will be variable i...View AnswerShow Answer

Government intervention in business began with

Correct AnswerverifiedShow Answer

The primary reason for government regulation of business is

Correct AnswerverifiedShow Answer

The question of whether current public functions should be performed by the government or private sector is addressed by

Correct AnswerverifiedB

Every form of state intervention that affects industry as a distinct part of the economy is called

Correct AnswerverifiedC

A strong industrial policy:

Correct AnswerverifiedShow Answer

Government regulations have been criticized for all the following reasons except

Correct AnswerverifiedShow Answer

Provide a short answer to each of these questions. Be sure to fully explain your answer. -Discuss the reasons for the overlapping trends of regulation and deregulation.

Correct AnswerverifiedThe overlap of trends of regulation and ...View AnswerShow Answer

Government influences business through all of the following nonregulatory methods except

Correct AnswerverifiedShow Answer

In many ways the most controversial aspect of the government/business relationship is regulation.

Correct AnswerverifiedShow Answer

Government intervention in monopolistic industries is often brought about by

Correct AnswerverifiedShow Answer

The dilemma of deregulation is

Correct AnswerverifiedShow Answer

Which of the following industries has not been affected by deregulation?

Correct AnswerverifiedShow Answer

Direct costs of regulation are most visible when we look at the number of new agencies created, aggregate expenditures, and

Correct AnswerverifiedShow Answer

The clash of ethical systems between government and business is centered around

Correct AnswerverifiedShow Answer

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While student answers will be variable i...
View Answer

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B

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C

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The overlap of trends of regulation and ...
View Answer

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