Question 1

__________ is an economic system characterized by public ownership of the means of production, the pursuit of collective goals, and centralized decision making.

Accepted Answer

Socialism is an economic system in which the means of production are owned and controlled by the state or society as a whole. The pursuit of collective goals and centralized decision making are also key features of socialism. In contrast, capitalism is characterized by private ownership of the means of production and individualistic decision making, while communism is a more extreme form of socialism in which all property is publicly owned and individual rights are heavily restricted. A mixed economy combines elements of both capitalism and socialism.

Question 2

__________ are large companies that are headquartered in one country but sell and produce goods and services in many countries.

Accepted Answer

Transnational corporations (TNCs) are large companies that operate in multiple countries, with their headquarters typically located in one country. They sell and produce goods and services in multiple countries, and often have a global reach in terms of both customers and suppliers. Interlocking directorates and economic concentrations refer to different types of corporate structures or practices, and capitalist intermonopolies is not a commonly recognized term in the field of international business.

Question 3

The _________ Act legalized military roundups and lengthy detention for any person-including a U.S. citizen-who is deemed to be an "enemy of the state."

Accepted Answer

The Military Commissions Act of 2006 allowed for the detention and trial of enemy combatants, including U.S. citizens, by military commissions, effectively legalizing military roundups and detention for those deemed "enemy of the state."

Question 4

Which of the following nations is not considered a mixed economy?

Accepted Answer

The former Soviet Union operated as a command economy, in which the government controlled all aspects of the economy, rather than a mixed economy that combines elements of government control and free market principles.

Question 5

__________ include U.S. automobile manufacturers (referred to as the "Big Three") and cereal companies (three of which own 77 percent of the market).

Accepted Answer

The answer of __________ include U.S. automobile manufacturers (referred to...

Question 6

A(n) __________ exists when four or fewer companies supply 50 percent or more of a particular market.

Accepted Answer

The answer of A(n) __________ exists when four or fewer...

Question 7

An example of __________ is the music industry, in which a few giant companies are behind many of the labels and artists known to consumers.

Accepted Answer

An oligopoly is a market structure in which a small number of firms has the majority of market share. In the case of the music industry, a few giant companies owning many of the labels and artists shows a high concentration of market power, making the industry an example of an oligopoly.

Question 8

Postman and Powers make all of the following suggestions about TV news except:

Accepted Answer

Postman and Powers suggest that TV news often presents less information than shows like The Daily Show. However, they do not make any suggestions regarding the other three options.

Question 9

The media have often been referred to as the

Accepted Answer

The answer of The media have often been referred to...

Question 10

A person who serves simultaneously on the board of a financial institution (for example a bank) and the board of a commercial corporation (such as a computer manufacturing company) that borrows money from the bank, exemplifies a(n) __________.

Accepted Answer

An interlocking corporate directorate occurs when an individual sits on the board of directors for two or more different companies. In this case, the individual serves on the board of both a financial institution and a commercial corporation, which can create potential conflicts of interest.

Question 11

__________ refers to an economic and political system that combines private ownership of some of the means of production, governmental distribution of some essential goods and services and free elections.

Accepted Answer

Democratic socialism is the only option that combines private ownership with governmental distribution of essential goods and services, while also allowing for free elections. Socialism typically involves government ownership of all means of production, while capitalism relies solely on private ownership and free markets. Social capitalism is not a commonly recognized term.

Question 12

A(n) __________ exists when several companies overwhelmingly control an entire industry.

Accepted Answer

An oligopoly exists when several companies overwhelmingly control an entire industry. A monopoly would indicate a single company controlling the industry, a shared monopoly would indicate multiple companies sharing control, and a conglomerate would indicate a company that owns several smaller companies in different industries.

Question 13

__________ is the largest nonfinancial U.S. transnational corporation (ranked by foreign revenues).

Accepted Answer

Exxon/Mobil is the largest nonfinancial U.S. transnational corporation when ranked by foreign revenues, as it is a major player in the global oil and gas industry with extensive international operations.

Question 14

In __________, resources are converted from state ownership to private ownership; the government takes an active role in developing, recognizing, and protecting private property rights.

Accepted Answer

Privatization involves the transfer of ownership and control of public resources to private entities. It typically involves the government taking an active role in recognizing and protecting private property rights. Monopolization refers to a situation where a single entity controls the supply of a particular product or service. Centralized decision making refers to a system in which key decisions are made by a central authority or government, often without input from citizens. The pursuit of collective goals involves individuals working together to achieve a common objective, often with the support of government or other social institutions.

Question 15

__________ combines elements of a market economy (capitalism) with elements of a command economy (socialism).

Accepted Answer

A mixed economy combines characteristics of both a market economy and a command economy, using elements of both capitalism and socialism.

Question 16

According to the text, what is the first step in keeping an eye on the news?

Accepted Answer

The text states that the first step in keeping an eye on the news is to become more analytical about the news one receives.

Question 17

Companies such as Time Warner and Viacom have extensive holdings in radio and television stations, cable television companies, book publishing firms, and film production and distribution companies. These companies are referred to as __________.

Accepted Answer

These companies are referred to as conglomerates, which are large corporations that own a diverse set of businesses across various industries.

Question 18

Corporations with control both within and across industries are often formed by a series of mergers and acquisitions across industries. These corporations are referred to as __________ which are combinations of businesses in different commercial areas, all of which are owned by one holding company.

Accepted Answer

Conglomerates are combinations of businesses in different commercial areas, all of which are owned by one holding company.

Question 19

"Ideal" socialism has three distinctive features. Which of the following is not a distinctive feature of "ideal" socialism?

Accepted Answer

Ideal socialism typically involves centralized decision making rather than decentralized decision making.

Question 20

Competition is reduced over the long run by __________, where members of the board of directors of one corporation also sit on the board(s) of other corporations.

Accepted Answer

Interlocking corporate directorates occur when members of the board of directors of one corporation also sit on the board(s) of other corporations. This reduces competition over the long run as these individuals have an incentive to work together to benefit all the corporations they represent, potentially leading to collusion and shared monopolies.

Quiz 13: Politics and the Economy in Global Perspective.