BUS 2000 (osu) Ch 2

_____ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles

Theocratic totalitarianism

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

mixed

Which of the following statements about the legal systems of countries is NOT true?

they are almost the same for all countries

Totalitarianism:

a form of government in which one person or political party exercises absolute control over all spheres of human life

A _____ system is based on a very detailed set of laws organized into codes

civil law

A political system that prioritizes the needs of the society over individual freedoms is called _____.

collectivism

Under the _____, cases are judged with reference to three characteristics: tradition, precedent, and custom

common law system

Peoples' right to protest on issues of accountability in public expenditure would be possible in a _____ political set-up.

democratic

A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries

false

Contracts under a civil law system tend to be very detailed with all contingencies spelled out

false

Judges under a civil law system have more flexibility than those under a common law system

false

Most modern democratic states practice representative democracy

false

Product liability can be much lower if a product does not conform to required safety standards

false

Product liability sets certain safety standards to which a product must adhere

false

The Foreign Corrupt Practices Act does not allow for grease payments

false

The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based

false

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

false

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

false

The tenet of _____ is that the welfare of society is best served by letting people pursue their own economic self-interest

individualism

An economy in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a _____.

market economy

A _____ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention.

patent

Interdependent political, economic, and legal systems of a country make up its

political economy

In Russia in the chaotic period following the collapse of communism, an outdated legal system, coupled with a weak police force and judicial system, allowed the Russian Mafia to demand "protection money" from business owners. Any business owner who rebelled had to face violent retribution. This violation of property rights exemplifies _____.

private action

In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to ________.

privatization

Violation of property rights done through legal mechanisms such as levying excessive taxation and requiring expensive licenses or permits from property holders is called ________.

public action

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

right-wing totalitarianism

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

the judges' decisions are based on detailed legal codes

A theocratic law system is one in which the law is based on religious teaching

true

In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.

true

In an individualist society, the welfare of society is best served by letting people pursue their own economic self-interest

true

In mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests.

true

In practical terms, individualism translates into an advocacy for democratic political systems and market economics

true

In the 1970s, the United States passed the Foreign Corrupt Practices Act which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred

true

It is possible to have a democratic political system that emphasizes a mix of collectivism and individualism.

true

Judges in a common law system have the power to interpret the law so that it applies to the unique circumstances of an individual case

true

Many of the world's larger trading nations, including Japan and the United Kingdom, have not ratified the United Nations Convention on Contracts for the International Sale of Goods (CIGS).

true

Modern socialists trace their intellectual roots to Karl Marx (1818-83), although socialist thought clearly predates Marx.

true

Property rights can be violated in two ways—through private action and through public action.

true

Property rights refer to the 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

true

The number of command economies has fallen dramatically since the demise of communism in the late 1980s.

true

The parties to an agreement normally resort to contract law when one party feels the other has violated either the letter or the spirit of an agreement

true

The two dimensions, according to which the political systems can be assessed, collectivism-individualism and democratic-totalitarian are independent of each other

true

When collectivism is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

true

Patents, copyrights, and trademarks establish ownership rights over intellectual property

ture