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

Question 1

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.

Answer 1

True

Question 2

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.

Answer 2

False

Question 3

The Cold War was in many respects a war between collectivism,championed by the former Soviet Union,and individualism,championed by the United States.

Answer 3

True

Question 4

When law courts interpret civil law,they do so with regard to tradition,precedent,and custom.

Question 5

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

Question 6

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

Question 7

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.

Question 8

One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest.

Question 9

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

Question 10

A common law system tends to be less adversarial than a civil law system.

Question 11

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

Question 12

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

Question 13

Karl Marx advocated state ownership of the basic means of production,distribution,and exchange (i.e.,businesses).

Question 14

By the mid-1990s,communism was rising worldwide.

Question 15

Plato did not equate collectivism with equality.

Question 16

Political systems that emphasize collectivism tend to be democratic,while political systems that place a high value on individualism tend to be totalitarian.

Question 17

In most democratic states,those who question the right of the rulers to rule find themselves imprisoned,or worse.

Question 18

Compared to a common law system,it is more expensive to draw up contracts in a civil law jurisdiction.

Question 19

The governments of China,Vietnam,and Laos are communist in name only because those nations have adopted wide-ranging,market-based economic reforms.

Question 20

All right-wing dictatorships display an affinity toward socialist or communist ideas.

Question 21

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 22

In the context of individualism,which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle?

A)guaranteeing individual freedom
B)government dictating what is in the best interest of society
C)guaranteeing self-expression
D)committing to private ownership
E)treating individual diversity as desirable

Question 23

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 24

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

Question 25

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

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

Question 26

Which of the following was advocated by Karl Marx?

A)capitalist society
B)individualism
C)selling state-owned enterprises to private investors
D)socialism
E)private profit over public good

Question 27

The country of Maracon downplays individual goals and emphasizes the collective goals of the country.Maracon's political system is most likely an example of

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

Question 28

Which of the following can be traced to the ancient Greek philosopher Aristotle?

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

Question 29

Other things being equal,a nation with democratic political institutions is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.

Question 30

Liability laws are typically the least extensive in highly-developed nations.

Question 31

Which of the following statements is true about political systems?

A)The political system of a country is independent of its economic and legal systems.
B)The political system of a country is of no importance to international business.
C)It is not possible to have democratic societies that emphasize a mix of collectivism and individualism.
D)It is possible to have totalitarian societies that are not collectivist.
E)The societal culture of a country does not influence its political system.

Question 32

Which of the following is inconsistent with Marxist philosophy?

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 33

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 34

Which of the following systems is a part of the political economy?

A)Religious system
B)Value system
C)Demographic system
D)Legal system
E)Technological system

Question 35

Which of the following is true about communism?

A)Communism propagates the idea of "private profit rather than public good."
B)By the mid-1990s communism started rising worldwide.
C)China has moved sharply away from strict adherence to communist ideology in the economic sphere.
D)Communists committed themselves to achieving socialism by turning their backs on violent revolution and dictatorship.
E)Communism stresses that the interests of the individual should take precedence over the interests of the state.

Question 36

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 37

The term "patent" refers to the exclusive legal rights of authors,composers,playwrights,artists,and publishers to publish and disperse their work as they see fit.

Question 38

Karl Marx promoted the idea of a _____ society in which the state owned the means of production,distribution,and exchange.

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

Question 39

In the country of Normian Republic,an individual's right to own land is restricted to a large extent on the basis that it runs counter to "the common good." In this context,which of the following is most likely to be the political system adopted by Normian Republic?

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

Question 40

Modern socialism traces its intellectual roots to

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

Question 41

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 42

Which of the following generally permits individual economic freedom,but restricts individual political freedom on the grounds that it would lead to the rise of communism?

A)pure democracy
B)right-wing totalitarianism
C)free market capitalism
D)representative democracy
E)communist totalitarianism

Question 43

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms,while in other sectors there is significant state ownership and government planning?

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

Question 44

Which of the following applies to most totalitarian states?

A)Free and fair elections are not denied to the citizens.
B)There is free access to state information.
C)All the basic civil liberties are granted to the citizens.
D)The right to freedom of expression and organization is not curbed.
E)Media are heavily censored.

Question 45

Which of the following is most likely to be advocated by individualism?

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

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 47

In practical terms,which of the following translates into an advocacy for democratic ideals and free market economics,which in general creates the most favorable environment for international businesses to operate in?

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

Question 48

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 49

Which of the following is a form of government in which one person or political party 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 50

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

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

Question 51

Which of the following is a form of totalitarianism which 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 52

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 53

States that limit the freedom of religious expression with laws based on religious principles most likely follow the political system of

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

Question 54

In which countries are we likely to find free market economies?

A)countries where the good of the society has precedence over private profit
B)countries where individual goals are given primacy over collective goals
C)countries where state-owned enterprises have a monopoly in certain industries
D)countries that have adopted communism as their political system
E)countries where the government plans the goods and services produced

Question 55

Which of the following is a feature of representative democracy?

A)Restrictions on an individual's right to freedom of expression,opinion,and organization
B)Inability of the citizens to vote out elected representatives who fail to perform their job adequately at the next election
C)An unlimited term for elected representatives
D)A court system that is linked to the political system
E)A nonpolitical police force and armed service

Question 56

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 57

Which of the following is true about the three broad types of economic systems?

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 58

In what economies,do governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?

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

Question 59

Which of the following statements is most likely to be true regarding private ownership?

A)It reduces a nation's dynamism and its investments in innovation and creativity.
B)It is most commonly found in command economies.
C)It eliminates competitors and reduces pressure to lower production costs.
D)It gives entrepreneurs an incentive to search for better ways of serving consumer needs.
E)It is based on the philosophy that "the good of society is more important than the interests of an individual."

Question 60

Which of the following refers to an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced?

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

Question 61

A legal system which is based primarily on religious teachings is referred to as a

A)civil law system.
B)theocratic law system.
C)common law system.
D)precedent law system.
E)public law system.

Question 62

The Boldovian government took Sea Lion Inc.,a domestic,private shipbuilding firm,into state ownership to save the company from bankruptcy.However,the other private competitors in the shipbuilding industry were enraged by this decision of the government.As a result,the government had to reduce the tax burden on all other private shipbuilding firms so that both the state-owned enterprise and private firms could co-exist.According to this information,Boldovia has most likely adopted what type of economy?

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

Question 63

When firms do not wish to accept the rules of the CIGS,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 64

Which of the following legal systems is most likely to be based on tradition,precedent,and custom?

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

Question 65

The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called what type of rights?

A)civil
B)political
C)shareholder
D)property
E)public

Question 66

Which of the following refers to documents that specify the conditions under which an exchange is to occur and detail the rights and obligations of the parties involved?

A)memoranda
B)manifestoes
C)contracts
D)white papers
E)minutes

Question 67

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 68

After the collapse of communism in Dehran,successful business owners often had to pay "protection money" to the mafia or face violent retribution.In the context of property rights,the behavior of the mafia is an example of

A)active violation.
B)public action.
C)private action.
D)boundary spanning.
E)industrial espionage.

Question 69

Which of the following is a law system based on a detailed set of laws organized into codes?

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

Question 70

Which of the following statements is true about the difference between contracts in common law and civil law systems?

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 have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems.

Question 71

Which of the following establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations?

A)Contracts for the International Sale of Goods
B)Bill of Exchange
C)United Nations Charter
D)International Forwarding Agent Contract
E)International Promissory Note

Question 72

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

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

Question 73

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 74

Which of the following is true about legal systems?

A)All countries have the same,uniform legal environment.
B)Unlike the economic system of a country,the legal system is independent of the country's political system.
C)The government of a country defines the legal framework within which firms do business.
D)The attractiveness of a country as an investment site or market is unaffected by its legal system.
E)Collectivist-inclined totalitarian states tend to enact laws that are pro-private enterprise.

Question 75

In the context of property rights,which of the following refers to theft,piracy,blackmail,and the like by private individuals or groups?

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

Question 76

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises,whereas the 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 the

A)economic system of a country is independent of its legal system.
B)legal system of a country is not influenced by the prevailing political system.
C)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 77

Which of the following is true about the three main types of legal systems?

A)Judges under a civil law system have more flexibility than those under a common law system.
B)The common law system evolved in the United States over hundreds of years.
C)Although Islamic law is primarily concerned with moral behavior,it has been extended to cover certain commercial activities.
D)A theocratic law system is based on a detailed set of laws organized into codes.
E)Common law cannot be altered,clarified,or amended to deal with new situations.

Question 78

In the context of common law,which of the following terms refers to the ways in which laws are applied in specific situations?

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

Question 79

Which of the following best exemplifies public action?

A)The mafia in Cedia Republic demands "protection money" from successful domestic business owners.
B)Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups.
C)Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic.
D)The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners.
E)To promote the Cedian culture,the government has made Cedian movies,which are based on Cedian history,tax-free.

Question 80

In the context of property rights,which of the following best exemplifies private action?

A)levying excessive taxes
B)requiring expensive licenses or state permits from private property holders
C)taking assets into state ownership without compensating the owners
D)government bureaucrats demanding bribes from businesses in return for the rights to operate in a country
E)business owners stealing their competitors' trade secrets and intellectual properties