Question 1

Which of the following legal systems is most likely to be based on tradition, precedent, and custom?

Accepted Answer

A)  Common law
B)  Civil law
C)  Autocracy law
D)  Monarchy law
E)  Universal lawF) A) and B)
G) B) and D)

Question 2

In the context of property rights, which of the following best exemplifies private action?

Accepted Answer

A)  Levying excessive taxes
B)  Requiring expensive licenses or state permits from private property holders
C)  Taking assets into state ownership without compensating the owners
D)  Government bureaucrats demanding bribes from businesses in return for the rights to operate in a country
E)  Business owners stealing their competitors' trade secrets and intellectual propertiesF) B) and D)
G) B) and E)

Question 3

How does corruption affect the economic growth rate in a country?

Accepted Answer

Economic evidence suggests that high lev...

Question 4

Other things being equal, a nation with democratic political institutions is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.

Accepted Answer

A) True 
 B)False

Question 5

In the context of common law, which of the following terms refers to the ways in which laws are applied in specific situations?

Accepted Answer

A)  Tradition
B)  Precedent
C)  Custom
D)  Interpretation
E)  CultureF) B) and E)
G) C) and D)

Question 6

Which of the following statements is most likely to be true regarding private ownership?

Accepted Answer

A)  It reduces a nation's dynamism and its investments in innovation and creativity.
B)  It is most commonly found in command economies.
C)  It eliminates competitors and reduces pressure to lower production costs.
D)  It gives entrepreneurs an incentive to search for better ways of serving consumer needs.
E)  It is based on the philosophy that "the good of society is more important than the interests of an individual."F) B) and E)
G) A) and B)

Question 7

Those who attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship are:

Accepted Answer

A)  pure capitalists.
B)  social democrats.
C)  individualists.
D)  anarchists.
E)  aristocrats.F) C) and D)
G) A) and C)

Question 8

Which of the following is true about the three broad types of economic systems?

Accepted Answer

A)  For a pure market economy to function efficiently product supply must be restricted.
B)  In a command economy, state-owned enterprises have little incentive to control costs and be efficient.
C)  The sole role of government in a command economy is to encourage vigorous free and fair competition between private producers.
D)  Mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.
E)  Production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.F) B) and C)
G) None of the above

Question 9

Discuss why command economies tend to stagnate.

Accepted Answer

While the objective of a command economy...

Question 10

Political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian.

Accepted Answer

A) True 
 B)False

Question 11

Compared to a common law system, it is more expensive to draw up contracts in a civil law jurisdiction.

Accepted Answer

A) True 
 B)False

Question 12

In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as:

Accepted Answer

A)  communists.
B)  capitalists.
C)  democrats.
D)  individualists.
E)  anarchists.F) C) and D)
G) D) and E)

Question 13

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning?

Accepted Answer

A)  Command
B)  Pure market
C)  Mixed
D)  Centrally planned
E)  Laissez-faireF) A) and B)
G) C) and D)

Question 14

As per the U.S. law and OECD convention, which of the following is most likely to be considered as a grease payment?

Accepted Answer

A)  Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country.
B)  Gold Fire Inc. made a small payment of $20 to speed up some paperwork related to tax returns in a less developed country.
C)  The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution.
D)  Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product.
E)  Gold Fire Inc. made an unrecorded payment to one of its accountants in return for window dressing the company's accounts.F) None of the above
G) C) and D)

Question 15

The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms.

Accepted Answer

A) True 
 B)False

Question 16

By the mid-1990s, communism was rising worldwide.

Accepted Answer

A) True 
 B)False

Question 17

How do patents, copyrights, and trademarks differ from each other?

Accepted Answer

Patents, copyrights, and trademarks esta...

Question 18

Describe the significance of Contracts for the International Sale of Goods (CIGS).

Accepted Answer

When contract disputes arise in internat...

Question 19

Modern socialism traces its intellectual roots to:

Accepted Answer

A)  Aristotle.
B)  David Hume.
C)  Karl Marx.
D)  Adam Smith.
E)  Milton Friedman.F) A) and B)
G) B) and E)

Question 20

Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.

Accepted Answer

A) True 
 B)False

Exam 2: National Differences in Political, Economic, and Legal Systems

By the mid-1990s, communism was rising worldwide.

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Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.

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Modern socialism traces its intellectual roots to:

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Which of the following statements is most likely to be true regarding private ownership?

Correct AnswerverifiedShow Answer

Those who attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship are:

Correct AnswerverifiedShow Answer

In the context of common law, which of the following terms refers to the ways in which laws are applied in specific situations?

Correct AnswerverifiedShow Answer

Other things being equal, a nation with democratic political institutions is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.

Correct AnswerverifiedShow Answer

In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as:

Correct AnswerverifiedShow Answer

In the context of property rights, which of the following best exemplifies private action?

Correct AnswerverifiedShow Answer

Discuss why command economies tend to stagnate.

Correct AnswerverifiedWhile the objective of a command economy...View AnswerShow Answer

How does corruption affect the economic growth rate in a country?

Correct AnswerverifiedEconomic evidence suggests that high lev...View AnswerShow Answer

Political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian.

Correct AnswerverifiedShow Answer

As per the U.S. law and OECD convention, which of the following is most likely to be considered as a grease payment?

Correct AnswerverifiedShow Answer

Which of the following is true about the three broad types of economic systems?

Correct AnswerverifiedShow Answer

Describe the significance of Contracts for the International Sale of Goods (CIGS).

Correct AnswerverifiedWhen contract disputes arise in internat...View AnswerShow Answer

Compared to a common law system, it is more expensive to draw up contracts in a civil law jurisdiction.

Correct AnswerverifiedShow Answer

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning?

Correct AnswerverifiedShow Answer

How do patents, copyrights, and trademarks differ from each other?

Correct AnswerverifiedPatents, copyrights, and trademarks esta...View AnswerShow Answer

Which of the following legal systems is most likely to be based on tradition, precedent, and custom?

Correct AnswerverifiedShow Answer

The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms.

Correct AnswerverifiedShow Answer

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While the objective of a command economy...
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Economic evidence suggests that high lev...
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Correct Answer
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Correct Answer
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When contract disputes arise in internat...
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Correct Answer
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Patents, copyrights, and trademarks esta...
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Correct Answer
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Correct Answer
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