Chapter 2 Smartbook
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.
Democracy
Which law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority?
FCPA
According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.
False
Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.
False
Identify the accurate statement about individualism.
It stresses that society should be based on individual economic and political freedoms.
Who among the following should apply for a copyright?
Jude, a musician, who is composing his maiden album
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
How are monopolies viewed in a market economy?
Monopolies are considered a negative force as they can restrict output and increase prices.
In the last half of the twentieth century, Britain's Conservative Party sold state-owned enterprises to individual investors in order to create a free market economy. What process was Britain using to create this economy?
Privatization
Command economies do not make innovation a priority and, therefore, tend to stagnate.
True
Russia, as it is today, is an example of a pseudo-democracy.
True
Weak enforcement of laws encourages the infringement of intellectual property.
True
The United States passed the Foreign Corrupt Practices Act in response to _______ issues between U.S. companies and foreign countries.
bribery
Karl Marx would agree that _____.
capitalists take the value created by workers for their own use
The ____ is an example of an industry that has weak enforcement of intellectual property rights.
computer software industry
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
Political systems that emphasize individualism tend to promote _____.
democracy
Nations adopting the pure form of democracy would
directly involve citizens in the decision making of the country.
Theocratic totalitarianism is described as a political system
in which rulers govern based on religious rules and principles.
An energy company based in Houston often deals with piracy issues when exporting fuel in tankers to parts of Africa. This piracy is a form of _____ action.
private
The newspaper story said that the city council was corrupt and had recently taken over three businesses without compensating the owners for them. This type of corruption is an example of _____.
public action
The law in a ______ system is based on religious teachings.
theocratic law
Which Greek philosopher is credited with advocating the origins of collectivism?
Plato
Which of the following are ways in which property rights can be violated?
Through private action, Through public action
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.
Tribal
In a country governed by a totalitarian system, you would find that
basic civil liberties are denied to citizens.
A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.
common
The _____ often back(s) right-wing totalitarianism governments.
military
The system of government in a nation is called the _____ system.
political
A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.
trademark
Within a common law system, a country's legal history is known as ______.
tradition
Select the accurate description of a common law system.
A common law system has a degree of flexibility that other legal systems lack.
Select the accurate statement about intellectual property laws.
Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.
______ set certain safety standards to which a manufactured good must meet.
Product safety laws
Select an accurate description of a civil law system.
Unlike a common law system, a civil law system relies on detailed codes.
In the early 20th century, communists differed from social democrats in that communists believed in
a strategy of revolutionary action.
A _____ law system is based on a detailed set of laws organized into codes.
civil
The purpose of a(n) ______ payment is to facilitate the performance of duties that a government has already obligated itself to do.
grease
A businesses' property consists of which three things?
Land, Equipment, Buildings
______ rights determine how a resource or economic good is owned and used.
Property
By the end of the 1970s in Great Britain, state-owned companies monopolized the telecommunications, gas, railway, electric, and shipbuilding industries. This was a reflection of which political system in place at the time?
Social democracy
Grease payments are considered an acceptable form of a _____.
bribe
The philosopher Aristotle argued in favor of individualism when he said that
diversity and private ownership are beneficial to society.
In a pure ______ economy, all productive activities are owned privately—not by the state.
market
In a ______ economy, both private enterprise and state ownership co-exist.
mixed
Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society.
philosophers and soldiers
In a nation where right-wing totalitarianism is present, you would find that
political freedom is restricted, frequently on the grounds that it would lead to the rise of communism.
As used in the text, the term "______" refers to a resource that an individual or business legally owns.
property
Collectivism refers to a political system that
restricts an individual's right to do something on the grounds that it runs counter to the "good of society."
Intellectual property laws are said to
stimulate innovation and creative work.
In a command economy, businesses are owned by _____.
the state
A society that is based on collectivism would agree that
the welfare of the society is best served by a governing body dictating what is in the society's best interest.
Under Vladimir Putin, the government of Russia is becoming increasingly _____.
totalitarian
Contracts drafted under a civil law system tend to be _____ compared to those drafted under a common law system.
shorter
A nation that fosters individualism would
stress that the interests of the people are more important than the interests of the state.
China and Vietnam have experienced greater individual freedom in the economic sphere; however, this is not a reflection of the presence of a(n) _____.
democracy
The ______ system of a country refers to the rules, or laws that regulate behavior along with the system that enforces them.
legal
A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.
patent
The term ______ refers to the interconnection of the political, economic, and legal systems of a country.
political economy
Levying excessive taxes or requiring expensive permits from property holders are both examples of ______ action.
public
High levels of corruption in a country would tend to _____.
reduce foreign direct investment
In a(n) ______ democracy, elected individuals represent the citizens and make decisions on behalf of the electorate.
representative
While a pure command economy is thought to be based on the collective good of a society, it often results in
state-owned enterprises that have fewer reasons to control costs.
When describing intellectual property rights, it can be said that they are
subjected to various forms of protection from country to country.
The production of goods in a pure market economy is determined by
supply and demand.
As of 1995, WTO members were obliged to grant and enforce patents that lasted at least _____.
20 years
Which of the following factors would make a country desirable to do business with?
A market-based economy, Democratic political institutions
What should Stephen, the CEO of an athletic clothing company, obtain to prevent competitors from copying the company logo?
A trademark
______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.
Individualism
______ 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 statement BEST describes a totalitarian system?
It is a form of government in which the state recognizes no limits to its authority and strives to regulate all aspects of public and private life.
In the late 1970s, the communist version of socialism was at its highest point. This has declined dramatically today with old-style communism found most notably in only _____.
North Korea
Which of these statements would Aristotle agree with based on his arguments for individualism?
Private property receives greater care compared to communal property.
______ refers to the process of selling state-owned enterprises to private investors.
Privatization
The most widely practiced theocratic legal system in the modern world is ______ law.
Islamic
Which statement best describes the United Nations Convention on Contracts for the International Sales of Goods (CISG)?
It governs international commercial contracts for the sale of goods.
What is one of the tenets of individualism?
The welfare of society is best served by allowing individuals to follow their own economic self-interest.
Which characteristic is typical within a totalitarian country?
There is no questioning of the ruler's decisions.
When firms do not wish to accept the United Nations Convention on Contracts for the International Sales of Goods (CISG), they often opt for arbitration by a recognized arbitration court to settle contract disputes.
True
What condition paves the way for an ideal representative democracy?
Universal adult suffrage
In 1994, the TRIPS agreement was extended to include _____.
intellectual property
Along the continuum between democracy and totalitarianism, it can be said that
it is possible to have a democratic state in which some degree of collectivism exists.
A ______ refers to a legal right that enables the creator of an original work the right to publish and distribute their work as they see fit.
copyright
The Declaration of Independence is an ideal example of the tenets of _____, which emphasize the importance of individual freedoms.
individualism
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 political economy of a country refers to the interaction of the political, economic, and _____ systems of a country.
legal
The members of the World Intellectual Property Organization have signed international treaties designed to protect intellectual property, including the oldest such treaty known as the ______, which dates to 1883.
Paris Convention for the Protection of Industrial Property
When there is evidence of corruption in a country, it will
reduce the return on investment of a business.
In a market economy, the government's role is to
encourage free and fair competition and minimize restrictive business practices.
Joanna is a lawyer defending a client accused of arson. During the trial, she refers to a similar case that came before the Supreme Court several years ago. The case Joanna references is an example of _____.
precedent
A pseudo-democracy is the term given to a nation in which
the government is in control of the machinery of the state and uses this power to deny political and civil liberties.
Which of the following are examples of private action and a violation of property rights?
Blackmail, Theft
What is the objective of a pure command economy?
Allotment of resources for the overall good of society
______ refers to a political system that values the needs of society over that of an individual.
Collectivism
Until recently, what was the most common form of totalitarianism in the world?
Communist
______ law is the body of law that governs the written agreements specifying the conditions under which an exchange is to occur.
Contract
Social democrats advocate for _____.
achieving socialism through non-violent means
What is a feature of contracts drafted under a common law system?
Contracts drafted under a common law system allow judges to interpret a dispute based on the prevailing situation.
To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards that include
limited terms in office.
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.
