INB 450 Midterm

Which of the following refers to a political system in which the government is by the people, exercised either directly or through elected representatives? A) democracy B) tribal totalitarianism C) communism D) collectivism E) right-wing totalitarianism

A) democracy

Which of the following is one of the three measures used to determine the Human Development Index (HDI) of a country? A) life expectancy at birth B) wholesale price index C) gender ratio D) balance of payment E) carbon footprint of the country

A) life expectancy at birth

Which of the following is true about the common law system? A) Common laws cannot be altered, clarified, or amended. B) Judges in a common law system have the power to interpret the common law so that it applies to the unique circumstances of an individual case. C) Common law is primarily a moral rather than a commercial law. D) Contracts drafted under a common law framework tend to be less specific and short. E) A common law system tends to be less adversarial than a civil law system.

B) Judges in a common law system have the power to interpret the common law so that it applies to the unique circumstances of an individual case.

Which of the following is most likely to be the result of a country having lax intellectual property laws? A) Most of the companies in the country will commit themselves to extensive basic research. B) Imitating a patented product or process will become difficult. C) Firms will be reluctant to enter into such a country. D) Many companies will engage in greater innovation and creative work. E) Inventors and authors will have better opportunities to grow and to be rewarded.

C) Firms will be reluctant to enter into such a country.

Which of the following is TRUE of countries with a market economy? A) The supply of goods and services is highly restricted. B) Governments support restrictive business practices. C) Production is determined by the interaction of supply and demand. D) All productive activities are state owned. E) Communism and collectivist goals are given priority.

C) Production is determined by the interaction of supply and demand.

A legal system which is based on a detailed set of laws organized into codes is referred to as a ___ ___ ___.

Civil Law System

The Hourglass, a U.S.-based company, is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which of the following countries should The Hourglass enter? A) Country A, which lacks democratic institutions and has a market-based economic system. B) Country B, which has democratic institutions and where economic activity is heavily regulated by the state. C) Country C, which has democratic institutions and where corruption is rampant. D) Country D, which has democratic institutions and a market-based economic system. E) Country E, which lacks democratic institutions and where property rights are always respected.

D) Country D, which has democratic institutions and a market-based economic system.

Which of the following is TRUE about individualism? A) Individualism translates into an advocacy of command economics. B) In individualism, one person exercises absolute control over the economy. C) Individualism creates an unfavorable environment for international businesses. D) In individualism, private ownership is desirable. E) Political systems that emphasize individualism typically tend to adopt totalitarian governments.

D) In individualism, private ownership is desirable.

In the context of violation of property rights, which of the following refers to the extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats? A) protection money B) private theft C) public transparency D) public action E) private violation

D) public action

People in the West tend to associate a representative democracy with ___ ___ ___ ___.

a market economic system

An individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" when the political system emphasizes ___.

collectivism

In Nerumbia, all businesses are owned by the state. The Nerumbian government plans production, fixes commodity prices, and also gives directions on investments to ensure they benefit the nation as a whole and not only a few individuals. What type of economy has Nerumbia adopted?

command

Those who believe that socialism can be achieved only through violent revolution and totalitarian dictatorship are called ___.

communists

The product liability laws are established to protect the

consumers in case a product causes injury, death, or damage.

The Surbeel Republic exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investment and international trade. Based on this information, the Surbeel Republic is likely against ___.

deregulation

In a pure command economy, the prices at which goods and services are sold are planned by the ___.

govenment

A payment made to expedite or to secure the performance of a routine governmental action is called a ___ ___.

grease payment

Countries that emphasize individual goals over collective goals tend to have what type of economic system?

market

ABC Medical Corporation has developed a new medication to treat a rare disease. Which type of legal protection grants ABC Medical Corporation exclusive rights for a defined period to the manufacture, use, or sale of the new medication?

patent

The United Nations Convention on Contracts for the International Sale of Goods (CIGS) was introduced to

resolve disputes that arise in international trade regarding which country's laws to apply.

The government of Batwi, which is made up of military officers, permits some individual economic freedom. However, it restricts individual political freedom on the basis that it could lead to the rise of communism. According to this information, which political system is found in the country of Batwi?

right-wing totalitarianism

A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism?

theocratic

Vintage Incorporated is going to do business with a company that is located in the Pabul Republic, a common law country. The companies have agreed to draft the business contract in the Pabul Republic. Since the contract will be drafted under a common law framework, which of the following best characterizes the contract?

very detailed with all contingencies spelled out