100 multiple choice question on Public Administration.

What is a weakness of the Shareholder model?

· Its weaknesses are that, pragmatically, business only wants government to step aside in terms of short-term gains, and rarely accounts for external effects and long-term effects, even negative ones for the market itself.

According to the text, which of the countries has the highest ranking across all indexes discussed (economic freedom, global competitiveness, human development, environmental concern, and equitable wealth distribution)?

· Switzerland

What is crony capitalism?

· Crony capitalism refers to an economy, or parts of an economy, in which there are close relationships between business and government that lead to favored treatment of individuals, companies, or even entire industries at the expense of the public good.

What is Corporate Social Responsibility (CSR)?

· Corporate Social Responsibility is meeting basic economic needs through diligence and innovation, exceeding legal requirement by fulfilling the spirit of the law, while simultaneously finding ways to enhance the community and planet with mutually beneficial actions, and when possible, provide outright acts of charity.

What is the primary motivation of Corporate Social Responsibility?

· Aims to ensure companies conduct in a way that is ethical.

What is the FED? What is it’s primary function?

· A quasi-government independent entity governed by seven members who are nominated by the President. FED influences the money supply, regulates the growth of the money supply.

What is the primary difference between monetary and fiscal policy?

· Monetary Policy: the control over the supply of money and interest rates as is done by the Federal Reserve

· affects the short-and long-term business environment

 

· Fiscal Policy: the amount of taxes collected and the way they are spent, such as defense versus education, as well as the role and size of debt which is largely controlled by Congress

· affects the short- and long-term business environment

After Congress passes a law, the executive branch is responsible to implement it.  In many cases, this involves a very complex process of interpreting the law and setting definite standards for compliance with the intent of Congress. What is this process called?

· Rule-Making

What is the name of the publication that contains notices of proposed regulatory actions and hearings?  

· Federal register

What is the name of the law that authorizes and provides guidelines for the regulatory process?

· Administrative Procedures Act (APA)

In many federal agencies, an independent official presides over disputes between business and government.  What is this official is called?

· Administrative law judge

How do the authors distinguish between ethic and morals?

· Ethics refer to rules provided by an external source ex; codes of conduct in workplace. Morals refer to an individual's own principles regarding right and wrong.

What is the difference between a presidential and a parliamentary system?

· In a parliamentary system, all national authority is vested in an elected national legislature that then chooses the chief executive (usually called the prime minister)

· In a presidential system, power is divided between a separately elected president and legislature(Congress), and there are courts that can declare a law unconstitutional.

Wilson discusses two aspects of democracy that are necessary to protect freedom.  What are they?

· Direct democracy: all or most citizens make government decisions by themselves.

· Representative democracy: People elect representatives to make most decisions.

What are the major parts of the Constitution?

· Preamble

· Articles of Confederation

· Bill of Rights

· Other Amendments

What did the Framers mean by “representational democracy”?

· Political system in which policy is made by officials elected by the people

What is the subject of Federalist 10?

· Federalism

· Trying to prevent the factions by removing its causes or controlling its effects

What is the subject of Federalist 51?

· Separation of Powers, focuses on the need for checks and balances in government.

· Checks and Balances, James Madison defends it in the system of the constitution.

What are the two ways of amending the Constitution?

· Propose and Amendment

· Ratify an Amendment

 

 

 

The framers sought to prevent an accumulation of arbitrary and unaccountable power by dividing government in some fundamental ways.  How is government power divided in the United States?

· Executive Branch

· Legislative Branch

· Judicial Branch

The Federal Reserve Board includes a Chairman, a Deputy, and how many members are on the Board of Governors?

· 7 members

Which make up the three major areas of Consumer protection laws and regulations?

·  

What is the difference between a categorical and a block grant?

· Federal government dictates the use of categorical grant money, States  get to use their own discretion to spend block grants.

The Sarbanes-Oxley Act of  2002 was characterized by President Bush as “the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt”.  The act mandated several reforms such as?  

·  

When was the APA enacted?

· June 11, 1946

Who opposed The Sarbanes-Oxley Act put in by President Bush?

·  

 

 

Which are the six things identified in the reading and class PowerPoint presentation that are said to encourage corporate social responsibility and ethical behavior?

· Cause Promotion

· Cause-related marketing

· Corporate Social Marketing

· Corporate Philanthropy

· Community Volunteer

· Socially Responsible business practices

What are the arguments for building an ethical business culture?

· Economic viability and responsibility to employees, owners, creditors etc. Breaking laws put government at risk which jeopardizes sales and revenues and also may lead to government intervention and increased regulation

Congress could not levy taxes; rather, it could request levies from the states – which were consistently ignored.  This is characteristic of which era?

· The Anti Central Government Era (1781-1787)

Wilson lists 5 distinctive factors of the American Bureaucracy.  Describe them.

· Political authority over the bureaucracy is divided (by the presidency & Congress.

● It shares functions with other levels of government.

● It pays business firms and nonprofit organization to administer many of its programs.

● It operates under the scrutiny of courts that protect the rights of its clients or beneficiaries.f

● It regulates many privately owned enterprises. (Wilson, p291-292)

In which era did the federal government began its protracted period of disinvestment in government responsibilities though deregulation, privatization and devolution to the states?

· The Right Sizing Government Era (1970s-Present)

In which era did government at all levels begin a concerted effort to place limits on unrestrained business growth and business practices that adversely affected the health and safety of Americans?

· Big Government era ?

Which theory of regulation focuses on the idea that the private sector can regulate itself much of the time if properly incentivized?

· Public Choice theory

Which theory of regulation focuses on the idea that the private sector can regulate itself much of the time if consumers are conscious of the effects of business and have good information?

· Self-regulation theory

Which theory of regulation focuses on the idea that regulation is needed in order to protect the public good, especially in areas such as in natural monopolies and where competition does not provide a natural corrective action such as in employment discrimination?

· Public interest theory (pg 139)

To whom is The Fed accountable?

· To the public and the U.S congress

What type of monetary policy is generally pursued during a recession in order to encourages growth?

· In a recession the Fed, will lower interest rates and increase the money supply.

The text describes three models of business/government relations.  List and describe them.  

· Shareholder, Strategic, and Stakeholder

 

 

Lobbying is big business.  Approximately what is the total lobbying spending by lobbying clients (i.e., official lobbying dollars), according to the text?

· (3.3 billion)

Often, rich people in a poor country invest most of their capital in other countries because those economies are more stable and safer. What is this practice called?

· Capital Flight

 

 

TERMS TO BE FAMILIAR WITH

Some or all of the following terms will appear on the midterm in “matching” section.  Students will be asked to match the terms below with the phrase that best explains them.

Anti-Central Government Era: (1781 - 1787)

· During this founding era of the nation, the prevailing sentiment was the strong fear of a forceful government. Led to the drafting and passage of the Articles of Confederation.         

Small Government Era: (1787 - 1887)

· The government was reformulated under the Constitution to allow a greater, but still balanced, role for a central government whose powers were shared with states and citizens, as well as its own branches.                 

Moderate Sized Government Era: (1887 - 1933)

· Developed the role of regulator most forcefully to deal with the growth of the modern monopoly (Railroads, standard oil). Almost all other roles expanded as well ie the recreation of a central bank.

Big Government Era: (1933 - 1970)

· Ushered by the great depression(1929-1939) followed closely by the vast and expensive WWII but also included a quarter century post war boom.    

                              

Right Sizing Government Era: (1970s - Present)

· Resurgence of the market model pressed government into considering rightsizing through deregulation and privatization. Government generally reduced its roles as regulator and service provider and was considered successful and moderately popular.          

Monetary policy:

· Manages economic conditions. It is managed by the Federal reserve board. Monetary policy concerns control of the money supply or how much money is in circulation.                               

Fiscal policy:

· Is a broad term used to refer to the tax and spending policies of the federal government. (revenue, spending, budget deficits, national debt)                                       

Shareholder Model:

· Macroeconomics focus, (Business-Centric perspective) It considers only business interest, and asserts that the 2 sectors should be as separate as possible, with the implicit assumption that government should also be as small as possible.                          

Stakeholder Model:

· Society focus, It assumes that business is a fully integrated element of society, and must give as much attention to the interests of internal and external stakeholders as it does to owners or shareholders. Emphasizes the idea that society must balance both democratic and economic principles to be just, ensuring social cohesion.                            

Strategic Model:

· Microeconomics focus, It assumes that business is but one of many players, and looks at maximizing business's success in a competitive and political world.        

 

 

APA:

· (1946) Federal statute that governs the way in which administrative agencies of the federal government of the US may propose and establish regulations.

ALJ:

· Administrative Law Judge, function was created by the (APA) in 1946 to ensure fairness in administrative proceedings before Federal Government agencies. Serve as independent impartial triers of fact in formal proceedings requiring a decision on the record after the opportunity for a hearing.

CFR:

· Code of Federal Regulations, is an arrangement of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government.

The 5 Roles of Government:

· Framework, Promotion, Security, Welfare, Regulatory

 

Link to Quizlet with answers: https://quizlet.com/207734254/pa-315-midterm-study-guide-flash-cards/