1. c) Activities in the nonmarket environment may be voluntary or involuntary.

2. d) performance
3. c) Issues
4. a) pursue issues because of the benefits that accrue to their members.
5. c) They represent the interests of individuals, such as those affected by pollution
6. c) Lobbying
7. c) issue identification
8. d) enforcement
9. b) a market strategy
10. c) government; markets
11. b) They are important when opportunities are controlled by markets
12. d) Consumer electronics
13. b) patents
14. d) Starbucks
15. d) screening
16. d) choice
17. d) issues and events
18. c) that the coverage increases with audience interest
19. b) Ninth Amendment
20. a) Jessica
21. a) liberal
22. b) apply to statements made to third parties
23. a) It requires a showing of actual damages.
24. b) changing the behavior of private economic agents through social pressure
25. a) It attempts to influence public policy through Congress.
26. b) confrontational private politics
27. b) improves the public standing of a firm
28. c) confrontational private politics creates a demand for cooperative private politics
29. a) negative information provided by a firm can have more impact on an issue than that
provided by an NGO
30. d) partner with activist groups
31. c) It may be revealed directly to the public or identified within the company.
32. c) identification
33. d) escalation
34. b) Resolution
35. c) preparedness
36. b) Communication and rectification
37. c) hardball
38. d) public policy
39. d) The benefits of collective action are higher than the costs of organizing it.
40. d) alternative means for achieving benefits
41. d) The greater the resources available to an interest group, the greater the set of
activities that can be funded.
42. c) The spreadsheet is intended to summarize rather than substitute for the analysis of
the benefits and costs of nonmarket action.
43. d) entrepreneurial
44. c) The outcome is largely determined by the amounts and effectiveness of the
nonmarket action generated by the interests on each side of the issue.
45. d) society can rely on countervailing influences from opposing interests to mitigate
business nonmarket power
46. a) Activist groups
47. b) management
48. c) reputation of the top management
49. b) the consequences of alternatives for constituents of government officeholders
50. b) interest group is more informed about the issue than are the government
officeholders
51. a) government officeholders
52. a) lobbying
53. d) threats and coercion
54. c) committee staff
55. c) contributions to a candidate’s campaign
56. c) ad hoc coalition
57. b) employees
58. d) public advocacy
59. b) Sherman Act
60. a) functioning of markets and the nature of competition
61. d) addresses potentially anticompetitive actions
62. b) A manufacturer of flight communication systems requires dealers to carry only its
parts.
63. d) Most markets are resilient and strategic behavior can limit efficiency.
64. a) maximization of producers’ plus consumers’ surplus.
65. b) eliminate inefficient cross-subsidization
66. a) judicial institutions
67. d) social regulation
68. c) Administrative Procedures Act of 1946
69. c) Private interests affect regulatory agencies indirectly through pressure on Congress
and the executive branch.
70. b) deadweight loss
71. a) Market imperfections
72. a) cross-subsidization
73. c) equity tranche
74. a) president
75. c) Gramm-Leach-Bliley Act of 1999
76. d) ignored evidence of a crisis in Europe at the same time as the one in the United
States
77. d) banks with assets over $10 billion
78. b) The credit rating agencies were widely criticized for failing to appreciate the risks
associated with the collateralized debt instruments.
79. c) sets capital requirements for banks
80. how to think about population growth; the difficulty of predicting future technological
progress and innovation
81. d) market imperfections, including externalities and public goods
82. a) exorbitant costs associated with private bargaining
83. is providing incentives for abatement by internalizing the cost of the harm done by the
pollution
84. The failure of RGGI to affect environmental goals led states to consider withdrawing
from the initiative.
85. The EPA enforcement process requires the filing of a notice of a complaint and a
hearing before an administrative law judge (ALJ)
86. b) private parties
87. d) the government was trying to pick winners rather than allowing the market to
determine the winners
88. c) of protests from environmentalists who claimed that such projects posed a veritable
threat tothe wildlife of the region
89. a) Subsidization decreases dependence on imported fuels.
90. a) tax credits for households to install solar panels on rooftops
91. c) high feed-in tariffs for power producers
92. b) U.S. consumers had benefited from the cost-efficient location of production in
China even though it meant the loss of high-paying jobs in the United States.
93. a) labor costs in China were very low relative to that in Europe and the United States
94. d) norms
95. a) Property rules provide incentives to create assets.
96. a) distinctiveness
97. d) it is difficult to determine the actual damages incurred as a consequence of a breach
98. b) Eminent domain
99. d) government
100. b) are difficult to predict