Business Ethics Final Study Guide Test.

Business Ethics Final Study Guide Test. Which of the following observations is true? a. Businesses follow a collectivistic ethic. b. Ethical systems are different for governments and businesses. c. Governments follow an individualistic ethic. d. The relationship between business and government is not adversarial in nature. - CORRECT ANSWER b. Ethical systems are different for governments and businesses. Which of the following is businesses' primary means of influencing government? a. advertising b. deregulation c. lobbying d. taxation - CORRECT ANSWER c. lobbying Which of the following is an argument used against industrial policy? a. Government interference via industrial policy making reduces market efficiency. b. The declining competitiveness of the United States in all major global markets is proof of poor industrial policy. c. The successful use of industrial policy by foreign governments cannot be emulated in the U.S. d. There has to be a constant change in industrial policy with every successive government. - CORRECT ANSWER a. Government interference via industrial policy making reduces market efficiency. Because of the (lack of) economics of scale, these entities may be most affected by regulation. - CORRECT ANSWER small businesses What is moral suasion? - CORRECT ANSWER persuading business to act in the public interest Why have some businesses pushed for greater governmental regulations? - CORRECT ANSWER Certain regulations control excessive competition. A(n) ____ exists in a market where the economies of scale are so great that the largest firm has the lowest cost and is thus able to drive out competition. - CORRECT ANSWER natural monopoly In order to reduce costs, a plastic manufacturer disposes of toxic waste by dumping it into a river adjacent to its factory without proper treatment. This gives rise to a situation known as a(n): - CORRECT ANSWER negative externality Which of the following is an outcome of social regulation? a. Federal Communications Commission b. Federal Deposit Insurance Corporation c. Interstate Commerce Commission d. Occupational Safety & Health Administration - CORRECT ANSWER d. Occupational Safety & Health Administration Which of the following statements is true of deregulation? a. Deregulation has helped in reducing competition in most industries. b. Deregulation is the opposite of economic reform. c. Deregulation is used to remove certain industries from old-line regulations. d. The trend toward deregulation began in the 1950s. - CORRECT ANSWER c. Deregulation is used to remove certain industries from old-line regulations participation in the formulation and execution of public policy at various levels of government. - CORRECT ANSWER Political involvement Which of the following statements is true of lobbying? a. It is not related to passing of legislation by public officials. b. It occurs only at the federal level. c. It is not used to influence the election of candidates to public offices.