Political Science 241, The Politics of Business Regulation


Study Guide for Exam 1 (February 12, 2003)


The first exam covers the following material:

Kuttner, pages 3-23, 39-67

Lehne, pages 3-74, 97-182

Class lectures and discussions, January 13 to February 10


Part I: The exam includes 20 true/false items worth two (2) points each, two identification items worth ten (10) points each, and one essay worth 40 points. The exam counts as fifteen percent of your final grade.


Part II: Identification: You will define, illustrate, and explain the political importance of two of the following. You will be able to choose from four on the exam.


Mercantilism (Lehne 1)                                            

National Industrial Recovery Act (Lehne 1)                       

The Promotional State (Lehne 2)                           

Japanese MOF and MITI (Lehne 2)                                   

Public Attitudes towards business (Lehne 3)                   

Infrastructure (Lehne 4)                                            

subgovernments (Lehne 4)                                     

trade associations (Lehne 7)                                              

Litigation as a Business Tactic (Lehne 9)             

Second Best Markets (Kuttner 1)                           

Revealed preferences (Kuttner 2)                          

The Gift Relationship (Kuttner 2)                            

Kahneman and Tversky (Kuttner 2)                        


Public Problems                                           

Roger Sherman                                

State Attorneys General and Microsoft     

Business climate                                          

Child labor law                                              

Grassroots political strategies                   

Soft money                                                    

John Danforth                                               

U.S. Chamber of Commerce

Business Roundtable                                  


Massachusetts' Sumptuary Law of 1651


Part III: Essays: You will write an essay in response to one of the following questions. The best answers will blend evidence from lectures and the books; they will be clear, concise, and they will use specific examples. Only one essay question will appear on the exam. The essay is worth 40 points.


1. Explain the Business Dominance, Pluralist, and Market Capitalism models of Business-Government relationships, according to Lehne.  Give an example of each.  Which of these models do you think best fits the facts in the U.S., and why?


2. Describe corporate governance and business associations in Britain, Germany, and Japan. Which of these nations has the best arrangement for corporate governance and business associations? Why?


3. What does Kuttner mean by the “three efficiencies”?  Give two examples of each.  What are the consequences for wealth? For liberal democratic values?


4. What kinds of things have been “off-limits” for markets, according to Kuttner (chapter 2)? How has market expansion violated established boundaries in recent years?  What are the consequences of these violations?