IB TEST 3: CHAPTER 2

Command Economy

.The Government plans the goods, services, quantity, and price, then allocates them for the "good of society." .All businesses are state owned .Historically found in communist economies.

What are the parts of a business property?

1) Mineral Rights 2) Buildings 3) Equipment 4) Land

Which one of the following conditions pave the way for an ideal representative democracy

A nonpolitical state bureaucracy

Which of the following is TRUE of Karl Marx's Arguments

Capitalists take the value created by workers for their own use

A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship.

Communist Totalitarianism

through violent revolution and totalitarian dictatorship

Communists believed that socialism can only be achieved

Go hand in hand

Democracy & Individualism

Collectism and Totalitarianism

Go hand in hand (communist version)

An individual should have freedom in his or her economic and political pursuits.

Individualism

Select the correct statement about democracy and totalitarianism

It is possible to have a democratic state in which some degree of collectivism exists.

Which of the following statements is TRUE of corruption in a country

It reduces the return on investment of a business

.All productive activities are privately owned .Production is determined by supply and demand .Government encourages vigorous free and fair competition.

Market Economy

expropriate for their own use of the value created by workers while only paying workers only substance wages in return.

Marx also argued that capitalists

few benefit at the expense of many in a capitalist society where individual freedoms are not restricted.

Marx argued that

Karl Marx (although socialists thought clearly predates Marx since some elements of it can be placed back to Plato)

Modern socialists trace intellectual roots to

Which of the following is an example of facilitating payment under U.S law and the Organization for Economic Cooperation and Development (OECD) convention?

Payments that are made for the purpose of speeding up the issuance of a driver's license.

is used to stress that the political, economic, and legal systems of a country are interdependent

Political Economy

are interdependent and they influence each other

Political, economic and legal systems of a country

a political system in which citizens periodically elect individuals to represent them in government.

Representative Democracy

a poliical system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom. This includes freedom of speech (often because it is believed that it would lead to the rise of communism)

Right Wing Totalitarianism

to achieving socialism by democratic means. They turned their backs on violent revolution and dictatorship.

Social Democrats committed themselves

public ownership of the means of production for the common good of the society.

Socialists believed in

The political, legal, and economic systems of a country interact with and influence each other, and in doing so, they affect the level of economic well being.

The definition of Interdependent

1) Guarentee of individual freedom and self expression 2) Welfare of society best served by letting people pursue their own economic self-interest.

The two tenants of individuals;

state ownership basic means of production, distribution, and exchange (i.e; business)

To correct this perceived wrong, Marx advocated for

a political party in which a party, group, or individual thats represents the interests of a political tribe (ethnic group) monopolizes political power. (This type of Totalitarianism is exemplified in African states such as Zimbabwe, Tanzania, Uganda, and Kenya.)

Tribal Totalitarianism

Typically, the political system of a country can be assessed by the degree to which it is democratic and totalitarian.

Which statement best exemplifies a political system?

A civil law system is based on

a detailed set of laws organized into codes

The Definition of Totalitarianism

a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

In the archetypal pure market economy

all productive activities are privately owned by the state. Production is determined by the interaction of supply and demand and signaled to producers through price systems.

The definition of Individualism

an emphasis on the importance of guarenteeing individual freedom and self expression.

Grease payments are considered an acceptable form of

bribe

The body of law that governs oral and written agreements associated with the exchange of goods, services, money and property is known as

civil law

When product safety laws are more stringent in a firms home country than in a foreign country the home country is entering, the most ethical thing to do is to follow

home country standards

Theocratic Totalitarianism

is a political system in which a political power is monopolized by a party, group, or individual that governs according to religious principles. (The most common form of theocratic totalitarianism is Islam and is exemplifies in states such as Saudi Arabia and Iran.)

Pseudo- democracies

lie between pure democracies and complete totalitarianism systems. Authoritarian elements have captured some or much of the machinery of state and use this as an attempt to deny basic political and civil liberties. .An example of this is Vladimir Putin in Russia and Robert Mugabe in Zimbabwe.

Collectivism

needs of a society as a whole are generally viewed as being more important than individual freedoms.

Under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, the intellectual property regulations established by the World Trade Organization

oblige members to grant and enforce patents lasting at least 20 years.

High levels of corruption tend to

reduce foreign direct investment

The Definition of Democracy

refers to the political system in which governments by the people, exercised either directly or through elected representatives.

Public Action to violate property rights exists when

the government is responsible for the action

Privatization

the sale of state owned enterprises to private investors.

In the early twentieth century,

the socialist identity split into two broad camps; communists and social democrats

The purpose of a grease payment is

to facilitate the performance of duties that a government has already obligated itself to do

Many Right Wing Totalitarianism governments

were backed by the military, and in some cases, the government is made up by military officers.