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

Select the accurate description of a common law system.

A common law system has a degree of flexibility that other legal systems lack.

What is the objective of a pure command economy?

Allotment of resources for the overall good of society

True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.

False

______ property refers to property that is the product of any innovative activity, such as a screenplay, a music score, or the chemical formula for a new drug.

Intellectual

Which of the following are ways in which property rights can be violated? (Check all that apply.)

Through public action Through private action

A(n) ______ is a document that specifies the conditions under which an exchange is to occur, detailing the rights and obligations of the involved parties.

contract

______ law is the body of law that governs the written agreements specifying the conditions under which an exchange is to occur.

contract

In a pure ______ economy, all productive activities are owned privately—not by the state.

market

Companies wishing to pursue business opportunities in Sweden would find that while some industries are privately owned, others are state-controlled. What type of economy does this represent?

mixed

In a ______ economy, both private enterprise and state ownership co-exist.

mixed

A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.

patent

Millie, a research associate at an information technology firm, develops a program that allows more than six parties to interface at the same time. In order to prevent the competition from duplicating her invention, the company should apply for a

patent

The production of goods in a pure market economy is determined by

supply and demand

In a command economy, businesses are owned by _____.

the state

A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.

common

Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent.

intellectual

The ______ system of a country refers to the rules, or laws that regulate behavior along with the system that enforces them.

legal

The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country.

legal

Product ______ is the area of law that holds a firm and its officers responsible for injuries caused by their product.

liability

The term ______ refers to the interconnection of the political, economic, and legal systems of a country.

political economy

Several years ago, a customer brought a lawsuit against McDonald's because the coffee she purchased at the drive-thru window was hot when she spilled it on herself in her car. This lawsuit was based on _____.

product liability

______ rights determine how a resource or economic good is owned and used.

property