Question 1

One key components of a country's legal system is:

Accepted Answer

A country's laws regulate business practice, define the manner in which business tractions are to be executed, and set down the rights and obligations of those involved in business transactions. Establishing a mixed economy would be part of a country's economic system, not its legal system.

Question 2

Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit?

Accepted Answer

Copyrights are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

Question 3

In Russia, in the chaotic period following the collapse of communism, an outdated legal system, coupled with a weak police force and judicial system, allowed the Russian Mafia to demand "protection money" from business owners. Any business owner who rebelled had to face violent retribution. This violation of property rights exemplifies _____.

Accepted Answer

Private action refers to theft, piracy, blackmail, and the like by private individuals or groups. Although theft occurs in all countries, a weak legal system allows for a much higher level of criminal action in some than in others.

Question 4

The Research and Development division of a company has recently designed a new coffee vending machine that is likely to sell very well in the market. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of their product and to protect its product, it is now seeking a _____.

Accepted Answer

A patent grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention.

Question 5

A _____ system is based on a very detailed set of laws organized into codes.

Accepted Answer

A civil law system is based on a detailed set of laws organized into codes. When law courts interpret civil law, they do so with regard to these codes.

Question 6

Which of the following is an example of intellectual property?

Accepted Answer

Intellectual property refers to property that is the product of intellectual activity, such as computer software, a screenplay, a music score, or the chemical formula for a new drug.

Question 7

Under the _____, cases are judged with reference to three characteristics: tradition, precedent, and custom.

Accepted Answer

Common law is based on tradition, precedent, and custom.

Question 8

A _____ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention.

Accepted Answer

A patent grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention.

Question 9

_____ is the collective term for the legal rights relating to the use to which a resource is put and over the use made of any income that may be derived from that resource.

Accepted Answer

Property rights refer to the 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.

Question 10

In a _____ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.

Accepted Answer

In a mixed economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.

Question 11

Design and names by which merchants or manufacturers designate and differentiate their products are known as _____.

Accepted Answer

Trademarks are designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products (e.g., Christian Dior clothes).

Question 12

Which of the following is the most widely practiced theocratic legal system in the world today?

Accepted Answer

A theocratic law system is one in which the law is based on religious teachings. Islamic law is the most widely practiced theocratic system in the modern world, although usage of both Hindu and Jewish law persisted into the twentieth century.

Question 13

Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act?

Accepted Answer

In the 1970s, the United States passed the Foreign Corrupt Practices Act. This law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority.

Question 14

A civil law system tends to be less adversarial than a common law system because the:

Accepted Answer

A civil law system tends to be less adversarial than a common law system, because the judges rely upon detailed legal codes rather than interpreting tradition, precedent, and custom.

Question 15

In a(n) _____ economy the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.

Accepted Answer

In a pure command economy, the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.

Question 16

In which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?

Accepted Answer

In mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests.

Question 17

Which of the following statements about the legal systems of countries is true?

Accepted Answer

The legal system of a country refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained. The legal environments of countries differ in significant ways.

Question 18

A common law system is different from a civil law system because:

Accepted Answer

Judges in a common law system have the power to interpret the law, whereas judges in a civil law system have the power only to apply the law.

Question 19

Violation of property rights done through legal mechanisms such as levying excessive taxation and requiring expensive licenses or permits from property holders is called _____.

Accepted Answer

Public action to violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders.

Question 20

A theocratic law system is one in which the law is based on:

Accepted Answer

A theocratic law system is one in which the law is based on religious teachings.

Quiz 2: National Differences in Political Economy, and Legal Systems