Question 1

The 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 are called _____ rights.

Accepted Answer

A)   civil
B)   political
C)   shareholder
D)   property
E)   publicF) A) and B)
G) B) and D)

Question 2

Initech Incorporated,a multinational giant,runs a number of diversified businesses.Which of the following can be considered as an intellectual property of the firm?

Accepted Answer

A)   Income arising from renting lands and buildings
B)   Profits arising from the sale of agricultural crops
C)   Interest earned by lending capital to other firms
D)   Innovations and capabilities, and skills of the employees
E)   Investments made in raw materials and machineryF) A) and C)
G) C) and E)

Question 3

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted:

Accepted Answer

A)   right-wing totalitarianism.
B)   theocratic totalitarianism.
C)   representative democracy.
D)   pure democracy.
E)   totalitarian democracy.F) B) and D)
G) All of the above

Question 4

Which of the following law systems is most likely to be used by a law court if it solves a complicated case related to property rights,by basing his judgment on similar,old cases that have come before the courts?

Accepted Answer

A)   Theocratic law system.
B)   Civil law system
C)   Precedent law system
D)   Religious law system
E)   Monarchy law systemF) A) and B)
G) C) and E)

Question 5

In comparison to pure command economies,free market economies lack:

Accepted Answer

A)   private ownership.
B)   incentives for entrepreneurs.
C)   incentives to improve products and processes.
D)   government control over production and pricing.
E)   vigorous free competition between producers.F) A) and D)
G) B) and E)

Question 6

Which of the following has been advocated by Karl Marx?

Accepted Answer

A)   Capitalist Society
B)   Individualism
C)   Selling state-owned enterprises to private investors
D)   Socialism
E)   Private profit over public goodF) A) and D)
G) A) and C)

Question 7

Which of the following statements is true about product safety and liability laws?

Accepted Answer

A)   There are no criminal product liability laws, only civil product liability laws exist.
B)   Liability laws are typically most extensive in less developed nations.
C)   A boom in product liability suits and awards in the United States resulted in a dramatic decrease in the cost of liability insurance.
D)   Product liability can be much greater if a product does not conform to required safety standards.
E)   If product safety laws are tougher in a firm's home country than in a host country, the ethical thing to do is to adhere to host-country standards.F) A) and B)
G) B) and D)

Question 8

The social democratsbelieved that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Accepted Answer

A) True 
 B)False

Question 9

Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.

Accepted Answer

A) True 
 B)False

Question 10

One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest.

Accepted Answer

A) True 
 B)False

Question 11

Liability laws are typically least extensive in highly developed nations.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

Economic evidence suggests that high lev...

Question 13

By adopting the Contracts for the International Sale of Goods (CIGS),a nation signals to other adopters that it will treat the convention's rules as part of its law.

Accepted Answer

A) True 
 B)False

Question 14

When intellectual property laws are lax,firms are at a greater risk of having their ideas stolen by local entrepreneurs.

Accepted Answer

A) True 
 B)False

Question 15

The benefits,costs,and risks associated with doing business in a country are independent of that country's political,economic,and legal systems.

Accepted Answer

A) True 
 B)False

Question 16

Plato did not equate collectivism with equality.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is inconsistent with the Marxist philosophy?

Accepted Answer

A)   Concern over public good rather than private profit
B)   Monopoly of state-owned companies in certain industries
C)   Opposing the ideologies of capitalist societies
D)   Substantial limits on individual political freedom
E)   Selling state-owned enterprises to private investorsF) A) and B)
G) B) and D)

Question 18

In countries where individual goals are given primacy over collective goals,we are less likely to find market-based economic systems.

Accepted Answer

A) True 
 B)False

Question 19

In most democratic states,those who question the right of the rulers to rule find themselves imprisoned,or worse.

Accepted Answer

A) True 
 B)False

Question 20

Patents,copyrights,and trademarks establish ownership rights over _____ property.

Accepted Answer

A)   intellectual
B)   real
C)   tangible
D)   non-performing
E)   stolenF) B) and D)
G) B) and E)

Exam 2: National Differences in Political Economy

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

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

Initech Incorporated,a multinational giant,runs a number of diversified businesses.Which of the following can be considered as an intellectual property of the firm?

Correct AnswerverifiedShow Answer

In most democratic states,those who question the right of the rulers to rule find themselves imprisoned,or worse.

Correct AnswerverifiedShow Answer

In comparison to pure command economies,free market economies lack:

Correct AnswerverifiedShow Answer

The social democratsbelieved that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Correct AnswerverifiedShow Answer

The 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 are called _____ rights.

Correct AnswerverifiedShow Answer

Which of the following has been advocated by Karl Marx?

Correct AnswerverifiedShow Answer

Which of the following statements is true about product safety and liability laws?

Correct AnswerverifiedShow Answer

Which of the following law systems is most likely to be used by a law court if it solves a complicated case related to property rights,by basing his judgment on similar,old cases that have come before the courts?

Correct AnswerverifiedShow Answer

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted:

Correct AnswerverifiedShow Answer

Patents,copyrights,and trademarks establish ownership rights over _____ property.

Correct AnswerverifiedShow Answer

In countries where individual goals are given primacy over collective goals,we are less likely to find market-based economic systems.

Correct AnswerverifiedShow Answer

Which of the following is inconsistent with the Marxist philosophy?

Correct AnswerverifiedShow Answer

Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.

Correct AnswerverifiedShow Answer

Liability laws are typically least extensive in highly developed nations.

Correct AnswerverifiedShow Answer

The benefits,costs,and risks associated with doing business in a country are independent of that country's political,economic,and legal systems.

Correct AnswerverifiedShow Answer

When intellectual property laws are lax,firms are at a greater risk of having their ideas stolen by local entrepreneurs.

Correct AnswerverifiedShow Answer

Plato did not equate collectivism with equality.

Correct AnswerverifiedShow Answer

One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest.

Correct AnswerverifiedShow Answer

By adopting the Contracts for the International Sale of Goods (CIGS),a nation signals to other adopters that it will treat the convention's rules as part of its law.

Correct AnswerverifiedShow Answer

Correct Answer
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Economic evidence suggests that high lev...
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