IBUS 330 - CH2
What is the objective of a pure command economy?
Allotment of resources for the overall good of society
Carrie's professor asked her to describe democracy. Which of these statements should she use?
The pure form of democracy believes that laws and policies should be made directly by citizens.
True or false: Communism is in decline worldwide.
True
A(n) Blank______ is a document that specifies the conditions under which an exchange is to occur, detailing the rights and obligations of the involved parties.
contract
What are the three broad types of economic systems?
mixed economy market economy command economy
In a common law system, Blank______ refers to cases that have come before the courts in the past.
precedent
High levels of corruption tend to affect a nation by
reducing foreign direct investment.
In a(n) Blank______ democracy, elected officials represent the citizens and make decisions on behalf of the electorate.
representative
The CISG establishes rules that govern contracts specifically between
sellers and buyers who have companies in different nations.
In a totalitarian country, you would find that
the ruler's decisions are not to be questioned by individuals.
To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards. What is one of those safeguards?
universal adult suffrage
Which Greek philosopher is credited with advocating the origins of collectivism?
Plato
______ refers to the process of selling state-owned enterprises to private investors.
Privatization
What condition must be present to create an ideal representative democracy?
A nonpolitical state bureaucracy
Which continent has experienced tribal totalitarianism rule?
Africa
What is an accurate depiction of Karl Marx's arguments on socialism?
Capitalists take the value created by workers for their own use.
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.
Democracy
History shows that state ownership of the means of production never ran counter to the public interest.
False
______ property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.
Intellectual
In the early 20th century, communists differed from social democrats in that communists believed in
a strategy of revolutionary action.
A country that bases its laws on the traditions within the country's legal history operates under a Blank______ law legal system.
common
Based on the political party beliefs of the governments of China and North Korea, these countries practice Blank______ totalitarianism.
communist
What are the three main types of legal systems in use around the world?
theocratic law civil law common law
On the democracy and totalitarianism continuum, represents the form of government in which one political party exerts absolute control over all spheres of human life.
totalitarianism
______ often back(s) right-wing totalitarianism governments.
The military
What statement characterizes social democrats of the early 20th century?
They believed in achieving socialism through non-violent means.
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.
Tribal
Which statement best exemplifies a political system?
Typically, the political system of a country can be assessed by the degree to which it is democratic or totalitarian.
Islamic law, a form of theocratic law, is mostly concerned with
moral behavior.
Plato would have agreed that society should be stratified into classes and Blank______ were best suited to rule society.
philosophers and soldiers
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."
In a pure market economy, production of goods is determined by
the interaction of supply and demand.
______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.
Individualism
The Blank______ system of a country refers to the rules, or laws, that regulate behavior along with the system that enforces them.
legal
Compared to contracts drafted in a common law system, contracts in a civil law system
tend to be much shorter and less specific.
Public action to violate property rights exists when Blank______ is responsible for the action.
the government
What does individualism emphasize?
the importance of guaranteeing one's freedom and self-expression
What is one way high levels of corruption affect a country?
It reduces the return on investment of a business.
The system of government in a nation is called the Blank______ system.
political
According to Aristotle's philosophy on individualism,
private property receives greater care compared to communal property.
As used in the text, the term Blank______ refers to a resource that an individual or business legally owns.
property
The concept of individualism had significant influence on the American colonies as they fought for independence from Great Britain.
True
Which of the following statements about political systems is TRUE?
Typically, political systems that place a high emphasis on individualism tend to be democratic.
What is an accurate description of intellectual property laws?
Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.
What statement BEST defines right-wing totalitarianism?
It restricts political freedom, frequently on the grounds that it would lead to the rise of communism, but does allow some economic freedom.
Antitrust laws are put into place in a market economy in order to
limit monopolies.
In a Blank______ economy, both private enterprise and some state monopolies co-exist.
mixed
A Blank______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.
patent
The term Blank______ is used to stress that the political, economic, and legal systems of a country are connected.
political economy
Organized crime, such as the "Russian Mafia" that existed following the collapse of communism in Russia and extorted money from businesses is an example of Blank______ action.
private
Property rights violation that occurs through theft or piracy is an example of Blank______ action.
private
The legal rights regarding the use of a resource by a business or individual are known as Blank______ rights.
property
A country that is ruled based on theocratic totalitarianism is governed based on
religious principles.
If you adhered to the concept of individualism, you would say that individualism
stresses that the interests of the people are more important than the interests of the state.
The Foreign Corrupt Practices Act was established in the 1970s following the revelation that companies in Blank______ had bribed government officials in foreign countries as an attempt to win lucrative contracts.
the United States
Under a common law system, custom refers to
the ways in which laws are applied in specific situations.
The three main types of legal systems found around the world include common law, civil law, and Blank______ law.
theocratic
A(n) Blank______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.
trademark
According to individualism, economic interests should be dictated by Blank______.
the individual
A government plans the quantity of goods and services produced as well as the prices at which they are sold in a pure economy.
command
What three systems make up the political economy of a country?
legal system economic system political system
In a pure Blank______ economy, all productive activities are owned privately -- they are not owned by the state.
market
Under a(n) Blank______, authoritarian elements are used to attempt to deny basic political and civil liberties to individuals.
pseudo-democracy
Under the government of Vladimir Putin in Russia, elections are held for political office while there are also systems in place that limit the civil liberties of opposition groups. What type of government does this represent?
pseudo-democracy
Governments that levy excessive taxes or require expensive permits from property holders are both examples of Blank______ action to violate property rights.
public
What 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.
Kent needs to describe theocratic totalitarianism to his classmates. Which of these statements should he use?
It is a political system in which rulers govern based on religious rules and principles.
Select the correct statement about democracy and totalitarianism.
It is possible to have a democratic state in which some degree of collectivism exists.
Which one of these individuals should apply for a copyright?
Jude, a musician who is composing his maiden album
The purpose of a(n) Blank______ payment is to facilitate the performance of duties that a government has already obligated itself to do.
grease
Samuel wrote a screenplay and he is traveling to Los Angeles next week to pitch his idea to a movie studio. The screenplay is an example of Blank______ property.
intellectual
During the economic downturn of 2008-2009, the U.S. government "bailed out" AIG to prevent that financial institution from collapsing because it felt that if AIG collapsed, it would lead to serious consequences for the entire U.S. financial system. By helping out this troubled firm because it appeared vital to national interests, the U.S. government was acting as a Blank______ economy.
mixed
Natalia, a research associate at a biotechnology firm, develops a diagnostic kit for the rapid detection of malaria. In order to prevent competitors from duplicating her invention, Natalia should apply for a
patent.
Hanson Manufacturing holds legal title to the land, buildings, and equipment associated with the business. These holdings represent the company's Blank______.
property
Shondra's company developed a new method for sealing medication bottles and has decided to license their patented method to the leading drug manufacturers in the United States. Shondra's company has the legal right to do this based on the Blank______ rights they have for this method.
property
True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.
False
True or false: To date, all major trading nations have accepted the United Nations Convention on Contracts for the International Sale of Goods.
False
Which law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority?
Foreign Corrupt Practices Act
Following World War II, some nations with social democratic governments nationalized some private companies and transformed them into state-owned enterprises to be "run for the public good." This practice was most notable in Blank______.
Great Britain
The most widely practiced theocratic legal system in the modern world is Blank______ law.
Islamic
______ refers to a political system that values the needs of society over that of an individual.
Collectivism
Which of these intellectual property protections should Juliet, the CEO of a fast food restaurant chain, apply for to prevent competitors from copying her restaurant logo?
A trademark
The communist version of socialism reached its peak in the Blank______ and by the Blank______ it was in a state of collapse.
1970s; 1990s
If you were asked to provide a fact about a common law system, what should you say?
A common law system has a degree of flexibility that other legal systems lack.
Jarek has been asked to give a characteristic of a command economy to the class. What should he say?
Command economies do not make innovation a priority and, therefore, tend to stagnate.
What is a difference between the contracts drafted in a common law framework and those in a civil law system?
Resolving contract disputes in a common law system tends to be more adversarial than in civil law systems.
One way to describe collectivism is to say that it
believes that welfare of the society is best served by a governing body dictating what is in the society's best interest.
Grease payments are considered an acceptable form of a
bribe
A Blank______ law system is based on a detailed set of laws organized into codes.
civil
What are the two dimensions used to assess a country's political system?
collectivism vs. individualism democratic vs. totalitarian
Which statement accurately describes a civil law system?
unlike a common law system, a civil law system relies on detailed codes, and therefore, can be less adversarial
According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.
False
What is an example of facilitating payment under U.S. law and the Organization for Economic Cooperation and Development (OECD) convention?
Small payments that are made for the purpose of speeding up the issuance of a permit.
The Cold War is an example of how Blank______, adhered to by the former Soviet Union and Blank______, adhered to by the United States created conflict.
collectivism; individualism
In a Blank______ economy, dynamism and innovation are absent because private ownership does not exist and there is no incentive for individuals to look for a better way to serve customers.
command
The three broad types of economic systems include a market economy, a mixed economy and a(n) Blank______ economy.
command
The body of law that governs oral and written agreements associated with the exchange of goods, services, money, and property is known as Blank______ law.
contract
A Blank______ 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
A country under totalitarian rule would experience which two of these situations?
denial of civil liberties censored media
In a market economy, the government's role is to
encourage free and fair competition and minimize restrictive business practices.
