Deck 10: Strategies With Respect to Government

Question 1

A competitive strategy is

A)is the development of a price fixing arrangement.
B)the development of a distinctive capability.
C)a rent-seeking strategy.
D)a path to accounting profits.

Answer 1

the development of a distinctive capability.

Question 2

The Herfindahl-Hirschman Index is used to measure

A)brand recognition.
B)the ease of market entry.
C)market power.
D)none of these choices.

Answer 2

market power.

Question 3

A limit on how much a firm can export to a foreign country is called a(n)

A)import tax.
B)tariff.
C)quota.
D)dumped supply.

Answer 3

quota.

Question 4

Network affects can be present when the

A)internet was initially open to everyone.
B)costs of production are low relative to the cost of distribution.
C)cost of production are low relative to the costs of rent-seeking.
D)costs of distribution are low relative to the costs of production.

Question 5

If consumers desire choice

A)network effects with be minimized.
B)network effects are enhanced.
C)networks shift back to a previous technology.
D)government will regulate variety.

Question 6

The higher the HHI

A)the less dominated a market is by a single firm.
B)the more competitive is the market.
C)the more dominated a market is by a single firm.
D)the less likely the Sherman Act will be applied to a firm.

Question 7

Social regulations come about because of

A)market failure
B)government failure
C)changes in the social contract
D)rent-seeking by bureaucrats.

Question 8

Business should take government actions as

A)given.
B)something that must be recognized in decision-making.
C)a passive factor with little impact.
D)enhancing efficiency.

Question 9

Government rules and regulations can affect

A)market prices.
B)the strategy of business.
C)the costs of factors of production.
D)all of these choices.

Question 10

Regulatory commissions often set a(n)____ for a regulated business

A)economic profit.
B)fair rate of return.
C)overhead charge.
D)entry barrier.

Question 11

An early piece of anti-trust legislation is the

A)Sherman Act.
B)Mann Act.
C)DIDMCA of 1980.
D)Federal Reserve Act of 1913.

Question 12

Examples of agency addressing social regulation include.

A)OSHA
B)EPA
C)FDA
D)all of these choices

Question 13

Antitrust legislation is an attempt by government to make competition

A)equal.
B)efficient.
C)structured.
D)fair.

Question 14

Regulations can address

A)social issues.
B)economic issues.
C)social and economic issues.
D)international affairs.

Question 15

A major institution in international regulation is the

A)WTO.
B)Federal Reserve.
C)FDIC.
D)TSA.

Question 16

A focus of antitrust activities is

A)entry blocking.
B)price fixing.
C)the buying of patents.
D)rent-seeking by lobbyists.

Question 17

Dumping means that a firm is

A)violating environmental laws.
B)selling a product in a foreign country at a lower price than it does at home.
C)selling a product in a foreign country at a higher price than it does at home.
D)selling a product of lower quality in a foreign country.

Question 18

A tax on an imported product is called a

A)tariff.
B)quota.
C)dumping signal.
D)all of these choices.

Question 19

QWERTY

A)is the government agency charged with regulating the internet.
B)is an example of a network.
C)a cable system prior to VHS.
D)none of these choices.

Question 20

Network effects result from

A)entry barriers.
B)economies of scale.
C)standardization.
D)none of these choices.

Question 21

Many government regulations are law because small groups receive large benefits from them.

Question 22

Diversification is determined by adding value.

Question 23

Social regulations can create

A)a more competitive market place.
B)network externalities.
C)a lower HHI.
D)barriers to entry.

Question 24

Tariffs and quotas are used to promote trade with foreign countries.

Question 25

Network effects occur is the costs of production are lower than the costs of production.

Question 26

Networks are the result of product differentiation.

Question 27

Government regulations have little effect on the strategic decision of a business.

Question 28

Antitrust laws were initially developed in the 1980s.

Question 29

Dumping refers to selling a product abroad at higher prices than the product is sold domestically.

Question 30

New social regulations usual are created as barriers to entry.

Question 31

A high HHI indicates that a market may be dominated by one large firm.

Question 32

The WTO affects business practices across the globe.