MGMT 425 chapter 2 quiz

the common law system is: a) based on tradition, precedent, and custom b) open to giving judges the power only to apply the law c)not as flexible as other systems d) based on a detailed set of laws organized into codes

a) based on tradition, precedent, and custom

Historically, command economies were found in _____ countries, where collective goals were given priority over individual goals a) free-market b) communist c)democratic d) libertarian

b) communist

Which of the following philosophies can be traced back to the ancient Greek philosopher Plato? a) collectivism b)socialism c)individualism d)Hedonism

A) collectivism

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a _______ law system: a) theocratic b)common c)civil d)traditional

A) theocratic

____ refers to a philosophy that a person should have freedom in his or her economic and political pursuits a) individualism b) socialism c) totalitarianism d)collectivism

A)individualism explanation: The opposite of collectivism, individualism refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.

True or False: A civil law system tends to be more adversarial than a common law system

False explanation: A civil law system tends to be less adversarial than a common law system, since the judges rely upon detailed legal codes rather than interpreting tradition, precedent, and custom.

True or False: a common feature of many right-wing dictatorships is that they support socialist or communist ideas

False explanation: A common feature of many right-wing dictatorships is an overt hostility to socialist or communist ideas.

True or False: In a command 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

False explanation: In a 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

True or False: since the demise of communism in the last 1980s, the number of command economies has risen dramatically

False explanation:In a command economy, the government plans the goods and services that a country produces and all businesses are state owned, the rationale being that the government can direct the businesses to make investments that are in the best interests of the nation. Since the demise of communism in the late 1980s, the number of command economies has fallen dramatically.

True or false: in a market economy, a supply restriction occurs when a single firm monopolizes a market

True explanation: In a market economy, production is determined by the interaction of supply and demand and signaled to producers through the price system. For a market to work in this manner, supply must not be restricted. A supply restriction occurs when a single firm monopolizes a market.

the role of the government in a market economy involves: a) encouraging vigorous free and fair competition among private producers b) planning the types and quantities of goods and services to be produced c) determining the price at which goods and services will be sold d) mobilizing economic resources of the country for public good

a) encouraging vigorous free and fair competition among private producers explanation: The role of government in a market economy is to encourage vigorous free and fair competition between private producers. Governments do this by outlawing restrictive business practices designed to monopolize a market (antitrust laws serve this function in the United States).

____ is the extortion of income or resources of property holders by public officials such as politicians and government bureaucrats a) public action b) private actions c) corruptive action d) civil action

a) public action explanation: Public action to violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders.

Which of the following statements is true about trademarks? a) trademarks are designs and names by which businesses differentiate their products b) trademarks specify certain safety standards to which a product must adhere c) trademarks are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit d) trademarks grant the inventor of a new product or process exclusive rights for a defined period to the manufacture, use or sale of that invention

a) trademarks are designs and names by which businesses differentiate their products (think of McDonald's logo, lululemon logo, Apple logo, Christian Dior)

which of the following is a more attractive place to do business? a) a nation where economic activity is regulated by the state b) a nation with a market based economic system c) a national where the rules of law does not take precedence over business d)a nation that lacks democratic institutions

b) a nation with a market based economic system explanation: Other things being equal, a nation with democratic political institutions, a market-based economic system, and strong legal system that protects property rights and limits corruption is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions, where economic activity is heavily regulated by the state, and where corruption is rampant and the rule of law is not respected.

Which of these is a characteristics of a pure command economy? a) prices are determined by market forces b) the goods and services that a country produces are planned by consumers c) all businesses are owned by the state d) there is free and fair competition between private producers

c) all businesses are owned by the state explanation: In a pure command economy, the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold. In addition, in a pure command economy, all businesses are 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.

The benefits, cost, and risks associated with doing business in a country are a function of that country's: a) political system only b) economic system only c) political, economic, and legal system d) legal system only

c) political, economic, and legal system

the _____ committed themselves to achieving socialism without resorting to violent revolution and dictatorship a) maoists b)communists c)social democrats d)anarchists

c) social democrats

Which of the following is a feature of right-wing totalitarianism? a) monopoly of a group/party that represents the interests of a particular tribe b)involvement of people in the government, exercised either directly or through elected representatives c)Provisions of partial individual economic freedom along with restricted individual political freedom d) governance by a single party, group, or individual based on religious principles

c)Provisions of partial individual economic freedom along with restricted individual political freedom explanation: Right-wing totalitarianism generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.

Contracts drafted under a common law framework tend to be: a) inflexible and difficult to adjudicate b) inexpensive to draw up between two parties c)very short and general in scope d) very detailed with contingencies spelled out

d) very detailed with contingencies spelled out

True or false: in the early 20th century, the socialist ideology split into two broad camps: communists and social democrats

true