Business and SocietyMultiple Choice Questions (Enter your answers on the enclosed answer sheet)1) Business grassroots strategy is built on corporate stakeholders as identified by what?a) Rent chainb)

Business and SocietyMultiple Choice Questions (Enter your answers on the enclosed answer sheet)1) Business grassroots strategy is built on corporate stakeholders as identified by what?a) Rent chainb) Moneyc) Partisan politicsd) Median voters2) The principal vehicle for creating a majority coalition is from:a) Collection of minoritiesb) Large firmsc) Those without powerd) Anyone willing to join3) Business coalitions are made up of three types except which of the following?a) Peak organizationsb) Industry organizationsc) Ad hoc coalitionsd) stakeholder groups4) Which of the following peak associations focuses on the concerns of small business?a) Small Businesses Inc.b) Association of Small Business Concernsc) Entrepreneurs and Small Business Organizationd) National Federation of Independent Business.5) Trade associations serve a variety of _____ and ______ functions.a) market, corporateb) market, nonmarketc) corporate, nonmarketd) corporate, stakeholder6) In Buckley v. Valeo (1976), the Supreme Court ruled what concerning limits on cam-paign expenditures?a) There are definite dollar limitsb) Any limit threatens the freedoms of speech and associationc) A limit of $100 milliond) A partial limit is fine to preserve the First AmendmentUnit 3 Examination111Business and Society7) Campaign contributions are made for all but which of the following reasons?a) Influence legislative votingb) Obtain access to present or future officeholdersc) Affect outcome of electionsd) Help a CEO with his/her political future8) In which of the following venues do managers testify?a) Regulatory agenciesb) Congressional committeesc) Courtsd) All are correct9) The Hart-Scott-Rodino Antitrust Improvement Act of 1976 requires premerger notifi-cations to the ___ and the ___ of plans to merge.a) DOJ; FTCb) DOJ; FBIc) FTC; FCCd) There is no such provision in the law10) In 2000, what was the number of possible mergers reported under the provisions ofthe Hart-Scott-Rodino Act?a) None because firms do not need to report such information to the governmentb) 1,547c) 2,389d) 4,92611) Private antitrust suits appear to be going in which of the following directions?a) Increasing substantiallyb) Decreasing substantiallyc) Doubling in numbers year to yeard) Almost disappearing12) The Clayton Act has a provision for ____ damages and this provides a _____ incentiveto file suits.a) quadruple; strongb) treble; strongc) seven times; strongd) only twice; weakUnit 3 Examination112Business and Society13) If acts are said to be per se illegal, one defense allowed is the defendant did not com-mit the act and the second is what?a) Defendant is irrationalb) Defendant is unethicalc) Prosecution is out to get the defendantd) The defendant committed the act, but it was not unreasonable to do so14) Which of the following characteristics is not part of the Structural school of thoughtregarding the purpose of antitrust policy?a) International and globalb) Government is to protect society from economic powerc) Competition is the best protector of consumers and economic efficiencyd) Market is fragile and prone to failure15) Under the structural or traditional approach, it believed that in concentrated indus-tries collusion is _____________.a) unlikelyb) givenc) likelyd) very rare16) Which of the following statements is a characteristic of the Chicago school of thoughtpertaining to antitrust laws?a) Social and political as well as economic objectivesb) Markets are resilient enough that market imperfections can be addressedthrough incentivesc) Government is to protect society from economic powerd) Market power derives from both horizontal and vertical arrangements17) The Congress exerts great influence on the regulatory agencies through which of thefollowing means?a) Using its budgetary and oversight authoritiesb) Appointing the regulatory agencies administratorsc) Using the Office of Management and Budget (OMB)d) Using the independent commissionsUnit 3 Examination113Business and Society18) Which of the following is a cause of market imperfection?a) Pure competitionb) Asymmetric informationc) Government has no intervention in the economyd) Complete free trade19) In the case of a natural monopoly, economic theory recommends that government setthe price of goods and services to be:a) Equal to total cost of productionb) Equal to average cost of productionc) Equal to marginal cost of productiond) Equal to the competitors’ price20) Which one of the following activities could be considered a nonpecuniary externality?a) Effect of a firm’s new plant on the demand and price of laborb) The increase in the oil price after the oil shock of the 1970’sc) Generating pollution by driving a card) All the above have nonpecuniary externalities21) Which of the following is not a public good?a) National defenseb) Radio broadcastingc) Bridges and roadsd) Buying a TV set from the army’s surplus store22) What term below refers to behavior induced when people do not bear full conse-quences for their actions?a) Moral hazardb) Transaction costsc) Asymmetric informationd) Free entry and exit into the market23) What theory predicts that regulation initially will be found where there are marketimperfections and over time will evolve to serve the interests of the regulated indus-try?a) Interest groupb) Capturec) Flexibled) JurassicUnit 3 Examination114Business and Society24) Capture theory predicts that regulation will be found where there is/are market______.a) perfectionb) shiftsc) imperfectionsd) regularities25) ______ occurs when one group of customers pays more and another group pays lessthan the cost of providing their service.a) Market imperfectionb) Free-ridingc) Moral hazardd) Cross-subsidization