Deck 2: National Differences in Political, Economic, and Legal Systems

Question 1

A common law system is based on tradition and precedent.

Answer 1

True

Question 2

One way to assess a political system is by understanding the emphasis on individualism or collectivism.

Answer 2

True

Question 3

By the mid-1990s, communism had reached its highest point in history.

Answer 3

False

Question 4

The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other and do not influence one another.

Question 5

In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply.

Question 6

The Cold War can be thought of as a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.

Question 7

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Question 8

Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.

Question 9

Plato did not equate collectivism with equality.

Question 10

Judges under a civil law system have less flexibility than those under a common law system.

Question 11

Under the tenets of individualism, citizens should have freedom to choose their own economic and political pursuits.

Question 12

In a totalitarian country, all the constitutional guarantees on which representative democracies are built-an individual's right to freedom of expression and organization, a free media, and regular elections-are denied to the citizens.

Question 13

By adopting the Contracts for the International Sale of Goods (CISG), a nation signals to other adopters that it will treat the convention's rules as part of its law.

Question 14

The most common form of theocratic totalitarianism is Christianity.

Question 15

One identifier of a democratic state is a free media.

Question 16

Karl Marx believed that in a capitalist society, the few benefit at the expense of the many.

Question 17

Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.

Question 18

Contracts in a common law system tend to be shorter and less detailed than those created in a civil law system.

Question 19

In a common law system, judges base decisions on detailed legal codes.

Question 20

The governments of China, Vietnam, and Laos are communist nations, but they have adopted wide-ranging, market-based economic reforms.

Question 21

For centuries, Somariya was a capitalist country where the rich became richer and the poor became poorer. A group calling itself the "Change Brotherhood" sought to convert Somariya into a socialist country by democratic means. The "Change Brotherhood" is an example of

A) communists.
B) democrats.
C) republicans.
D) social democrats.
E) ideological democrats.

Question 22

Karl Marx believed that the way to correct the economic inequalities in a capitalist society was to

A) enforce high tariffs on imports.
B) promote exports but defer imports.
C) sell state-owned enterprises to private investor
D) have state ownership as the basic means of production.
E) expropriate funds from nation-states.

Question 23

When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for arbitration by a recognized arbitration court to settle contract disputes.

Question 24

The Greek philosopher Aristotle argued for diversity and private ownership. This laid the groundwork for

A) collectivism.
B) individualism.
C) socialism.
D) totalitarianism.
E) communism.

Question 25

Today, communism, which includes state control over all economic activity, is the political norm mainly found in

A) countries throughout Europe and Asia.
B) small pockets of the United States and Japan.
C) small fringe nations.
D) eastern Europe.
E) large Westernized countries.

Question 26

In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as

A) communists.
B) capitalists.
C) democrats.
D) individualists.
E) anarchists.

Question 27

Those who attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship are called

A) pure capitalists.
B) social democrats.
C) individualists.
D) anarchists.
E) aristocrats.

Question 28

The country of Maracon downplays individual goals and emphasizes the collective goals of the country. Maracon's political system stresses

A) democracy.
B) collectivism.
C) individualism.
D) capitalism.
E) privatization.

Question 29

On the Belif peninsula, citizens are restricted in how much land they can own if it creates opposition to the rule of the "common good." What is the political system of the Belif peninsula based on?

A) individualism
B) democracy
C) collectivism
D) capitalism
E) protectionism

Question 30

When considering the violation of property rights, blackmail is a form of public action.

Question 31

The sale of state-owned enterprises to independent, nonpublic investors is referred to as

A) privatization.
B) nationalization.
C) collectivism.
D) communalism.
E) public action.

Question 32

Karl Marx promoted the idea of a(n) ________ society in which the state owned the means of production, distribution, and exchange.

A) socialist
B) capitalist
C) individualist
D) monarchist
E) feudalist

Question 33

A political system that promotes activity "for the good of society" is based on

A) democratic principles.
B) individualism.
C) public action.
D) collectivism.
E) private action.

Question 34

The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on

A) democracy.
B) collectivism.
C) individualism.
D) capitalism.
E) privatization.

Question 35

A country's ________ system is a part of the political economy.

A) religious
B) value
C) demographic
D) legal
E) technological

Question 36

Karl Marx would disagree with which of these ideas?

A) concern over public good rather than private profit
B) monopoly of state-owned companies in certain industries
C) opposing the ideologies of capitalist societies
D) substantial limits on individual political freedom
E) selling state-owned enterprises to private investors

Question 37

A textbook author would apply for a patent to obtain the exclusive legal rights associated with their written piece.

Question 38

Modern socialism traces its intellectual roots to

A) Aristotle
B) David Hume
C) Karl Marx.
D) Adam Smith.
E) Milton Friedman.

Question 39

The benefits, costs, and risks associated with doing business in a country are independent of that country's political, economic, and legal systems.

Question 40

In a criminal case involving product safety law, defendants who are found guilty are subject to fines or imprisonment.

Question 41

What is a form of totalitarianism that advocates that socialism can be achieved only through a totalitarian dictatorship?

A) tribal totalitarianism
B) democratic totalitarianism
C) communist totalitarianism
D) theocratic totalitarianism
E) right-wing totalitarianism

Question 42

A totalitarian political system in which a party, group, or individual that represents the interests of a particular tribe monopolizes political power is referred to as

A) theocratic totalitarianism.
B) communist totalitarianism.
C) right-wing totalitarianism.
D) tribal totalitarianism.
E) democratic totalitarianism.

Question 43

The government of Alfon believes that its citizens should have complete freedom in their economic and political pursuits, and the Alfon ideology is "private profit over public good." In this context, it can be said that Alfon follows the philosophy of

A) totalitarianism.
B) socialism.
C) individualism.
D) communism.
E) Marxism.

Question 44

In what type of economy are all businesses state-owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals?

A) free market
B) deregulated
C) pure command
D) mixed
E) laissez-faire

Question 45

A nation based on individualism would agree that

A) communal property is more highly productive than private property.
B) public good should be preferred over private profit.
C) state-owned companies should monopolize certain industries.
D) the welfare of society is best served by some collective body such as government.
E) free market ideologies should be followed for achieving better standards of living.

Question 46

What is the central message of individualism?

A) State-owned entities are more profitable for the common good.
B) Individuals rely on government to organize society.
C) Individual economic and political freedoms are the rules on which a society should be based.
D) The few should benefit at the expense of the many.
E) Harmony can only be achieved by turning our backs on dictatorships.

Question 47

Which type of economy was found in communist countries where the government determined what would be produced and the price it would be sold for?

A) mixed
B) market
C) egalitarian
D) command
E) majoritarian

Question 48

What is one characteristic of a representative democracy?

A) all enterprises are state-owned
B) a single-house legislature
C) a lack of intellectual property laws
D) a court system that is linked to the political system
E) citizens periodically elect individuals to act on their behalf

Question 49

An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a ________ system.

A) barter
B) command
C) market
D) regulated
E) centrally planned

Question 50

Democracy, in its purest form, is based on the belief that

A) citizens should be directly involved in decision making.
B) political freedom of the citizens should be limited.
C) citizens are responsible for their own economic health and thus need no government.
D) individual freedom in the economic sphere should be restricted.
E) one person should have an absolute control over all the citizens of a nation.

Question 51

A common feature of many right-wing dictatorships is

A) total restriction on individual economic freedom.
B) strong commitment to socialist or communist ideas.
C) governments that are made up of military officers.
D) politicians from a particular tribe dominating the political system.
E) the direct involvement of the citizens in decision making.

Question 52

When the American colonists fought for independence from Great Britain, the concept of ________ influenced the decision.

A) private ownership
B) individualism
C) socialism
D) the greater good
E) collectivism

Question 53

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted

A) right-wing totalitarianism.
B) theocratic totalitarianism.
C) representative democracy.
D) pure democracy.
E) totalitarian democracy.

Question 54

Nations that limit the freedom of religious expression with laws based on religious principles follow the political system of

A) theocratic totalitarianism.
B) communist totalitarianism.
C) right-wing totalitarianism.
D) pure democracy.
E) representative democracy.

Question 55

Totalitarian states usually have

A) free and fair elections.
B) free access to state information.
C) all the basic civil liberties for citizens.
D) the right to freedom of expression and organization.
E) media that are heavily censored.

Question 56

What are the three broad forms of economic systems?

A) laissez-faire, authoritarian, egalitarian
B) market, command, and mixed
C) local, state, federal
D) ethical, political, radical
E) individualist, collectivist, majoritarian

Question 57

Which form of government involves one person or political party that exercises absolute control over all spheres of human life and prohibits opposing political parties?

A) capitalism
B) totalitarianism
C) pure democracy
D) republicanism
E) representative democracy

Question 58

In comparison to market economies, command economies lack

A) government interference in allocation of resources.
B) dynamism and innovation.
C) concern for the interests of the nation.
D) commitment to communism.
E) any opposition to private ownership.

Question 59

Right-wing totalitarianism restricts political freedom so as to inhibit the rise of

A) a pure democracy.
B) communism.
C) free market capitalism.
D) representative democracy.
E) tribal totalitarianism.

Question 60

In order for a market economy to work, it is important that supply of a product must not be restricted by a producer. In other words, ________ must be banned.

A) tariffs
B) start-ups
C) monopolies
D) globalization
E) nationalism

Question 61

When firms do not wish to accept the rules of the CISG, what do they often opt for to settle contract disputes?

A) UN involvement
B) arbitration
C) collective bargaining
D) common law system of the United States
E) Islamic law

Question 62

The United Nations created CISG in response to ________ that occur in international trade.

A) contract disputes
B) environmental concerns
C) political uprisings
D) tariff differences
E) foreign exchange rates

Question 63

A ________ law system is based on a detailed set of laws organized into codes.

A) civil
B) theocratic
C) common
D) traditional
E) religious

Question 64

The ________ system of a country encompasses the rules that regulate behavior.

A) economic
B) theocratic
C) legal
D) demographic
E) political

Question 65

Theocratic law systems are based on

A) legal precedent.
B) a detailed set of codes and laws.
C) religious teachings.
D) beliefs of a tribe .
E) beliefs of the ruling class.

Question 66

The common law system enjoys a degree of flexibility not found in other systems because

A) it is usually found in democratic republics.
B) it originated from Great Britain and can be found in almost all of its former colonies.
C) it is interpreted by the law courts with regard to tradition, precedent, and custom.
D) it is based on a detailed set of laws organized into codes.
E) it has originated recently-just a decade ago.

Question 67

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

A) command
B) pure market
C) mixed
D) centrally planned
E) laissez-faire

Question 68

Theft, piracy, and blackmail by private individuals or groups are examples of

A) private consumption.
B) private practice.
C) privacy tort.
D) private action.
E) privacy norms.

Question 69

In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. This document is a type of

A) memoranda.
B) manifesto.
C) contract.
D) white paper.
E) precedent.

Question 70

When considering the legal use of the word, ________ is the term given to a resource over which an individual or business holds a legal title.

A) liability
B) contract
C) shareholder
D) property
E) possession

Question 71

Which legal system is based on tradition, precedent, and custom?

A) common law
B) civil law
C) autocracy law
D) monarchy law
E) universal law

Question 72

Under a civil law system, it is the responsibility of a judge only to ________ the law.

A) create
B) apply
C) assess
D) interpret
E) change

Question 73

When comparing the three broad types of economic systems, it can be said that

A) for a pure market economy to function efficiently, product supply must be restricted.
B) in a command economy, state-owned enterprises have little incentive to control costs and be efficient.
C) the sole role of government in a command economy is to encourage vigorous free and fair competition between private producers.
D) mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.
E) production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

Question 74

When comparing contracts in common law and civil law systems, it can be said that

A) contracts drafted under a common law system tend to be longer than those drafted under a civil law system.
B) contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system.
C) it is more expensive to draw up contracts in a civil law system than in a common law system.
D) resolving contract disputes tends to be less adversarial in common law systems than in civil law systems.
E) civil law systems allow for judges to interpret a contract dispute, but this feature is absent in common law systems.

Question 75

The government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the energy industry were enraged by this decision. As a result, the government had to reduce the tax burden on all private energy firms so that both the state-owned enterprise and private firms could coexist. What type of economy does this portray?

A) mixed
B) market-based
C) command
D) laissez-faire
E) communist

Question 76

Jewish law is an example of what type of law system?

A) autocratic
B) civil
C) common
D) theocratic
E) universal

Question 77

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, while laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that

A) the economic system of a country is independent of its legal system.
B) the legal system of a country is not influenced by the prevailing political system.
C) the legal system does not affect the attractiveness of a country as an investment site or market.
D) all countries have the same legal environments.
E) the legal framework of a country reflects the rulers' dominant political ideology.

Question 78

What is the most widely practiced theocratic legal system in the modern world?

A) Christian law
B) Islamic law
C) Jewish law
D) Hindu law
E) Buddhist law

Question 79

Jonah is a lawyer representing a company in a lawsuit. During the trial, Jonah referred to a court case from ten years ago and asked the witness if she felt her company had acted in a similar manner as the company in the previous case. When Jonah referred to the previous court case, he was relying on ________ to make his case.

A) tradition
B) precedent
C) custom
D) interpretation
E) culture

Question 80

In 2008, the U.S. government stepped in to help some failing financial institutions as a way to prevent further collapse of the economy. Typically, the U.S. government does not interfere in these situations. What type of economy does this exemplify?

A) command
B) centrally planned
C) pure market
D) mixed
E) laissez-faire