Chapter 2

collectivism

A political system that stresses the primacy of collective goals over individual goals.

command economy

An economic system where the allocation of resources, and in what quantity, is planned by the government. (for the good of society)

foreign corrupt practices act (FCPA)

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

tradition

a country's legal history.

contract

a document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.

representative freedom

a political system in which citizens periodically elect individuals to represent them in government.

property

a resource over which an individual or business holds a legal title, that is, a resource that it owns.

communist totalitarianism

a version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship.

saudi arabia

absolute monarchy where state controls large portions of economic activity and where laws are directly informed by religious teachings taken from the Qur'an.

individualism (Aristotle)

an emphasis on the importance of guaranteeing individual freedom and self-expression. Aristotle argued that individual diversity and private ownership are desirable.

pseudo-democracies

authoritarian elements have captured some of much of the machinery of state and use this in an attempt to deny basic political and civil liberties.

common law

based on tradition, precedent, and custom. (evolved in england)

putin's russia

becoming less democratic under putin, potential opponents have been sidelined, civil liberties have been progressively reduced, and the freedom of the press has been diminished.

communists

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

property rights

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.

precedent

cases that have come before the courts in the past.

mixed 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.

social democrats

committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship.

when supply is greater than demand, prices will...

fall.

totalitarianism

form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

patent

grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention.

totalitarianism

individuals right to freedom is denied to citizens.

production

interaction of supply and demand.

product liability

involves holding a firm and its officers responsible when a product causes injury, death, or damages.

civil law

judges rely on detailed legal codes rather than interpreting tradition, precedent, and custom. (less flexibility)

theocratic totalitarianism

monopolized by a party, group, or individual that governs according to religious principles (Islam).

china & vietnam

moved toward greater individual freedom but is still ruled by parties that have a monopoly on political power and constrain political freedom.

supply restriction

occurs when a single firm monopolizes a market.

theocratic law

one in which the law is based on religious teachings. (islamic law is intended to govern all aspects of life)

democracy

political system in which government is by the people, exercised either directly or through elected representatives.

intellectual property

product of intellectual activity.

legal system

refers to the rules, or laws, that regulate behavior, along with the processes by which the laws of a country are enforced and through which redress for grievances is obtained.

right-wing totalitarianism

restricts individual political freedom; backed by military. (germany & italy)

when demand is greater than supply, prices will...

rise.

product safety laws

set certain safety standards to which a product must adhere.

political economy

stresses that the political, economic & legal systems of a country are interdependent; they interact with and influence each other, and in doing so, they affect the level of economic well-being.

political system

system of government in a nation.

contract law

the body of law that governs contract enforcement. (takes place when one party has violated either the letter or the spirit of an agreement.)

cold war

the cold war was in many respects, a war between collectivism. championed by the former soviet union, and individualism, championed by the U.S.

trademark

the designs and names, of ten officially registered, by which merchants or manufacturers designate and differentiate their products.

copyrights

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

public action

the extortion of income or resources of property holders by public officials.

market economy

the interaction of supply and demand determines the quantity in which goods and services produced.

main idea of collectivism (plato)

the needs of society as a whole are generally viewed as being more important than individual freedom.

privatization

the sale of state-owned enterprises to private investors.

custom

the ways in which laws are applied in specific situations.

socialists (Karl Marx)

those who believe in public ownership of the means of production for the common good of society. "to manage state-owned enterprise to benefit society as a whole, rather than individual capitalists'."

private action

violation of property rights through theft, piracy, blackmail, and the like by private individuals or groups.

tribal totalitarianism

when a political party that represents the interests of a particular tribe monopolizes power. (kenya)