IBUS 330: Quiz 2

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 detalled legal codes rather than interpreting tradition, precedent, and custom.

A common feature of many right-wing dictatorships is their support for socialist or communist ideas.

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

Since the demise of communism in the late 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.

The common law system is a relatively new form of law that emerged in the United States and is based on codes written within the last 80 years or so.

False Explanation: The common law system evolved in England over hundreds of years. It is now found in most of Great Britain's former colonies, including the United States

_____________ is the extortion of income or resources of property holders by public officials such as politicians and government bureaucrats.

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.

In the early twentieth century, the socialist ideology split into two broad camps: communists and social democrats.

True Explanation: In the early twentieth century, the socialist ideology split into two broad camps, the communists and the social democrats.

All things being equal, which nation offers a more attractive place to do business?

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 philosophy can be traced back to the ancient Greek philosopher Plato?

collectivism Explanation: Advocacy of collectivism can be traced to the ancient Greek philosopher Plato (427-347 BC), who in The Republic argued that Individual rights should be sacrificed for the good of the majority and that property should be owned in common.

Izzy was found guilty of a crime which demanded a prison sentence. The length of her sentence was based on previous cases similar to hers and what is traditionally prescribed for the type of crime she committed. Izzy was tried and convicted under a , ___________ law system.

common Explanation: Common law is based on tradition, precedent, and custom. This gives a common law system a degree of exiblity frat other systems lack.

Historically, command economies were found in ___________ countries, where collectivist goals were given priority over individual goals.

communist Explanation: Historically, command economies were found in communist countries where collectivist goals were given priority over individual goals. Since the demise of communism in the late 1980s, the number of command economies has fallen dramatically.

The role of the government in a market economy involves

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).

Tanveer thinks that his individual freedoms should be guaranteed, and that people should be able to pursue their own economic self-interest. Tanveeris a proponent of

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.

Contracts drafted under a common law framework tend to be

very detailed with contingencies spelled out. Explanation: Contracts drafted under a common law framework tend to be very detailed with all contingencies spelled out. In civil law systems, however, contracts tend to be much shorter and less specific because many of the issues are already covered in a civil code. Thus, it is more expensive to draw up contracts in a common law jurisdiction and resolving contract disputes can be very adversarial in common law systems. But common law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation.

The ______________ committed themselves to achieving socialism without resorting to violent revolution and dictatorship.

social democrats Explanation: The communists believed that socialism could be achieved only through violent revolution and totalitarian dictatorship, whereas the social democrats committed themselves to achleving socialism by democratic means, turning their backs on violent revolution and dictatorship

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a _______ law system.

theocratic Explanation: A theocratic law system is one in which the law is based on religlous teachings. Islamic law is the most widely practiced theocratic legal system in the modern world, although usage of both Hindu and Jewish law persisted into the twentieth century.

Which situation would require the use of a trademark?

A clothing manufacturer wants to differentiate its new line of jeans by naming the line "Ocean Blue." Explanation: Trademarks are designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products (e.g. Christian Dior clothes).

Which of these is a characteristic of a pure command economy?

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

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 benefits, costs, and risks associated with doing business in a country are a function of that country's

political, economic, and legal systems. Explanation: The benefits, costs, and risks associated with doing business in a country are a function of that country's political, economic, and legal systems.

What is a feature of right-wing totalitarianism?

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