Chapter 2 - Financial Statements, Taxes, and Cash Flow
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body. Democracy Oligarchy Totalitarianism Monarchy
Democracy
True or False: According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.
False
Privatization
The sale of state-owned enterprises to private investors
Political systems that emphasize individualism tend to promote _____. democracy state-run businesses a planned economy totalitarianism
democracy
In a market economy, the government's role is to allow private producers to control and restrict the supply of products. encourage free and fair competition and minimize restrictive business practices. encourage a single firm to monopolize the market. mobilize economic resources for the public good by prohibiting private ownership.
encourage free and fair competition and minimize restrictive business practices.
The Declaration of Independence is an ideal example of the tenets of _____, which emphasize the importance of individual freedoms. individualism isolationism collectivism expansionism
individualism
In a country governed by a totalitarian system, you would find that state bureaucracy is not influenced by politics. free and fair elections are conducted regularly. the country has a nonpolitical armed service. basic civil liberties are denied to citizens.
basic civil liberties are denied to citizens
The _____ often back(s) right-wing totalitarianism governments. citizens theocracy military tribe
military
political economy
the political, economic, and legal systems of a country
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.
A society that is based on collectivism would agree that individual freedom and self-expression are more important than "the good of society." free market economics should be promoted. the welfare of the society is best served by a governing body dictating what is in the society's best interest. individual diversity and private ownership should take precedence over state-owned enterprises.
the welfare of the society is best served by a governing body dictating what is in the society's best interest.
______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits. Communism Collectivism Totalitarianism Individualism
Individualism
Paris Convention for the Protection of Industrial Property
International agreement to protect intellectual property.
product liability
Involves holding a firm and its officers responsible when a product causes injury, death, or damage.
Theocratic Totalitarianism
a political system in which political power is monopolized by a party, group, or individual that governs according to religious principles
Theocratic Law System
a system of law based on religious teachings
Multiple Choice Question Social democrats advocate for _____. . private-ownership of the basic means of production, distribution, and exchange the idea of establishing a totalitarian dictatorship achieving socialism through non-violent means achieving socialism by emphasizing individual interests over societal goals
achieving socialism through non-violent means
Collectivism refers to a political system that -generally supports a pure market economy and privately-owned enterprises. -restricts an individual's right to do something on the grounds that it runs counter to the "good of society." -generally emphasizes individual freedom and self-expression. -stresses that the welfare of the society is best served by letting people pursue their own economic self-interest.
restricts an individual's right to do something on the grounds that it runs counter to the "good of society."
Product Safety Laws
set certain safety standards to which a product must adhere
Under Vladimir Putin, the government of Russia is becoming increasingly _____. individualistic totalitarian theocratic democratic
totalitarian
Which statement BEST describes a totalitarian system? It refers to a political system that typically asserts the primacy of individual economic and political freedom over societal goals. It is a form of government that typically aims to achieve socialism by democratic means rather than violent revolution or dictatorship. It refers to a political system in which government is by the people, exercised either directly or through elected representatives. 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.
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.
Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society. religious leaders the wealthy philosophers and soldiers lawyers and physicians
philosophers and soldiers
The system of government in a nation is called the _____ system. social political economic parliamentary
political
Public Action
the extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats
In a pure ______ economy, all productive activities are owned privately—not by the state. mixed planned market command
market
Which of these statements would Aristotle agree with based on his arguments for individualism? Individual freedom can be achieved only through totalitarianism. Communal property is more highly productive than private property. Private property receives greater care compared to communal property. Society should restrict self-expression and focus on common societal goals.
Private property receives greater care compared to communal property.
______ refers to the process of selling state-owned enterprises to private investors. Customization Privatization Commercialization Depersonalization
Privatization
intellectual property
Products of the mind, ideas (e.g., books, music, computer software, designs, technological know-how); intellectual property can be protected by patents, copyrights, and trademarks.
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 biased and irregular elections. politically influenced police force. restrictions on media. limited terms in office.
limited terms in office.
In a(n) ______ democracy, elected individuals represent the citizens and make decisions on behalf of the electorate. common totalitarianism elite representative
representative
Collectivism
A political system that emphasizes collective goals as opposed to individual goals.
True or false: Russia, as it is today, is an example of a pseudo-democracy.
True
In the early 20th century, communists differed from social democrats in that communists believed in commitment to democratic means. encouraging individual freedom. establishment of a non-totalitarian society. a strategy of revolutionary action.
a strategy of revolutionary action.
The term ______ refers to the interconnection of the political, economic, and legal systems of a country. transnational economic development cultural values political economy
political economy
Along the continuum between democracy and totalitarianism, it can be said that political repression is often widespread in a democracy, whereas a totalitarian state often involves its citizens in decision making. it is possible to have a democratic state in which some degree of collectivism exists. it is not possible to have a totalitarian state in which some degree of individualism is encouraged. democracy and communism go hand in hand, whereas a totalitarian state is consistent with the individualistic ideology.
it is possible to have a democratic state in which some degree of collectivism exists.
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? Totalitarianism Isolationism Privatization Federalism
Privatization
contract
A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.
Tribal Totalitarianism
A political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power.
Representative Democracy
A political system in which citizens periodically elect individuals to represent them in government.
Right-Wing Totalitarianism
A political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, often on the grounds that it would lead to the rise of communism.
market economy
An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced.
command economy
An economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government.
Individualism
An emphasis on the importance of guaranteeing individual freedom and self-expression.
World Intellectual Property Organization
An international organization whose members sign treaties to agree to protect intellectual property
______ refers to a political system that values the needs of society over that of an individual. Monarchy Collectivism Plutocracy Individualism
Collectivism
Until recently, what was the most common form of totalitarianism in the world? Tribal Right-wing Communist Theocratic
Communist
Totalitarianism
Form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited.
patent
Grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention
Identify the accurate statement about individualism. It believes that communal property receives the greatest care and is hence more highly productive than private property. It strongly advocates nationalization of private enterprises to benefit the society as a whole. It asserts the primacy of societal goals over individual goals using violent revolution and totalitarian dictatorship. It stresses that society should be based on individual economic and political freedoms.
It stresses that society should be based on individual economic and political freedoms.
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 _____. the Soviet Union North Korea Germany China
North Korea
Which Greek philosopher is credited with advocating the origins of collectivism? Euphrates Plato Socrates Aristotle
Plato
Democracy
Political system in which government is by the people, exercised either directly or through elected representatives.
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? Totalitarianism Social democracy Communism Pure democracy
Social democracy
legal system
System of rules that regulate behavior and the processes by which the laws of a country are enforced and through which redress of grievances is obtained.
Contract Law
The body of law that governs contract enforcement.
trademarks
The designs and names, often 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.
What is one of the tenets of individualism? State-owned property fosters the "good of society." The welfare of society is best served by allowing individuals to follow their own economic self-interest. The welfare of the society is best served by adopting a totalitarian political system. Communal property is more highly productive than private property and thus stimulates progress.
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? The leaders have limited terms in office. There is no questioning of the ruler's decisions. An individual is given the right to freedom of expression. There are no restrictions on media.
There is no questioning of the ruler's decisions.
social democrats
Those committed to achieving socialism by democratic means.
socialists
Those who believe in public ownership of the means of production for the common good of society.
communists
Those who believe socialism can be achieved only through revolution and totalitarian dictatorship
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power. Theocratic Monarchical Democratic Tribal
Tribal
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.
What condition paves the way for an ideal representative democracy? Universal adult suffrage Politically influenced court system Unlimited terms in office for elected representatives Restricted access to state information
Universal adult suffrage
Private Action
Violation of property rights through theft, piracy, blackmail, and the like by private individuals or groups.
Karl Marx would agree that _____. capitalists take the value created by workers for their own use state-owned enterprises pay workers lower wages individual capitalists rather than state-owned enterprises benefit the society as a whole in a capitalist society, many people benefit at the expense of a few
capitalists take the value created by workers for their own use
China and Vietnam have experienced greater individual freedom in the economic sphere; however, this is not a reflection of the presence of a(n) _____. monarchy totalitarianism democracy aristocracy
democracy
Nations adopting the pure form of democracy would deny civil liberties to citizens. foster political repression and a planned economy. directly involve citizens in the decision making of the country. assign a governing body to oversee economic matters.
directly involve citizens in the decision making of the country.
The philosopher Aristotle argued in favor of individualism when he said that communal property is more highly productive than private property. diversity and private ownership are beneficial to society. individual freedom should be restricted and society should be stratified into classes. unlike private property, communal property receives the greatest care.
diversity and private ownership are beneficial to society.
The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country. education legal business social
legal
United Nations Convention on Contracts for the International Sale of Goods (CISG)
A set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of businesses in different nations.
Civil Law System
A system of law based on a very detailed set of written laws and codes.
Common Law
A system of law based on tradition, precedent, and custom; when law courts interpret common law, they do so with regard to these characteristics.
Communist Totalitarianism
A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship.
A nation that fosters individualism would tend to support a totalitarian political system in order to achieve the needs of the society as a whole. advocate that communal property is more productive than private property and thus stimulates progress. restrict a person's right to do something on the grounds that it runs counter to "the common good." stress that the interests of the people are more important than the interests of the state.
stress that the interests of the people are more important than the interests of the state.
