Question 1

There must be no restrictions on supply for a market economy to work.

Accepted Answer

A market economy requires free flow of goods and services without any artificial barriers or restrictions to ensure efficient allocation of resources and price determination.

Question 2

The U.S.law enacted in 1977 that prohibits U.S.companies from making "corrupt" payments to foreign officials for the purpose of obtaining or retaining business is the Foreign Corrupt Practices Act.

Accepted Answer

The statement is true. The Foreign Corrupt Practices Act (FCPA) was enacted in 1977 to prohibit U.S. companies from making corrupt payments to foreign officials for business purposes.

Question 3

Tribal totalitarianism is found in states where political power is monopolized by a party,group,or individual that governs according to religious principles.

Accepted Answer

Tribal totalitarianism is found in states where political power is monopolized by a tribe or ethnic group, not necessarily governed by religious principles.

Question 4

Property rights refer to 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.

Accepted Answer

Property rights are a set of legal rights that an individual or entity has over a resource, which includes the right to use that resource, exclude others from using it, transfer ownership, and use any income generated from it. These legal rights are essential for the efficient allocation and management of resources in a market economy.

Question 5

The four major forms of totalitarianism are: communist totalitarianism,theocratic totalitarianism,tribal totalitarianism,and right-wing totalitarianism.

Accepted Answer

This statement is true. These are the four major forms of totalitarianism according to political science literature.

Question 6

A form of government in which one person or political party exercises absolute control over all spheres of human life,and opposing political parties are prohibited is referred to as totalitarianism.

Accepted Answer

Totalitarianism is a form of government in which one person or political party exercises absolute control over all spheres of human life, and opposing political parties are prohibited.

Question 7

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

Accepted Answer

Designs and names officially registered by merchants or manufacturers are called trademarks, not patents.

Question 8

There is essentially no relationship between collectivism and socialism.

Accepted Answer

This statement is false as collectivism is actually a key component of socialism, which emphasizes the collective ownership and control of resources rather than individual ownership. Therefore, the two concepts are closely related.

Question 9

Individualism is opposite to collectivism.In a political sense,individualism refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.

Accepted Answer

Individualism is indeed a philosophy that emphasizes the importance of individual freedom in both economic and political spheres. Collectivism, on the other hand, places greater emphasis on collective goals and well-being, often at the expense of individual autonomy.

Question 10

In Canada,the Foreign Corrupt Practices Act was passed during the 1960s following revelations that Canadian companies had bribed government officials in foreign countries in an attempt to win lucrative contracts.

Accepted Answer

The Foreign Corrupt Practices Act is actually a United States law, not a Canadian law. However, Canada has its own similar law called the Corruption of Foreign Public Officials Act, which was passed in 1998.

Question 11

The extortion of income from property holders by public officials is called private action.

Accepted Answer

The extortion of income from property holders by public officials is referred to as public action, not private action. Private action typically refers to non-governmental entities or individuals engaging in coercion or extortion.

Question 12

Bill S-21 entered into force in 1999 to prevent foreign companies from paying bribes to Canadian government officials for lucrative contracts.

Accepted Answer

Bill S-21, known as the Corruption of Foreign Public Officials Act, was enacted to prevent Canadian companies from bribing foreign officials, not to prevent foreign companies from bribing Canadian officials.

Question 13

In a market economy the goods and services that a country produces,and the quantity in which they are produced,is not planned by anyone.Rather,it is determined by the interaction of supply and demand and signalled to producers through the price system.

Accepted Answer

In a market economy, the price system is used to signal to producers what goods and services to produce and in what quantity, based on the interaction of supply and demand.

Question 14

Contract law,civil law,and theocratic law are the three main types of legal systems in use around the world.

Accepted Answer

The three main types of legal systems in use around the world are civil law, common law, and religious law. Theocratic law is a subset of religious law, not a main category on its own.

Question 15

Many social democratic governments nationalize private companies.

Accepted Answer

Social democratic governments tend to believe in a strong role for the state in the economy, and may nationalize private companies in certain sectors, such as healthcare or utilities. However, not all social democratic governments have necessarily pursued nationalization as a policy.

Question 16

Command economies are relatively common among the states of Western Europe,although they are becoming less so.France,Italy,and Canada can all be classified as command economies.

Accepted Answer

Command economies are not common among the states of Western Europe. France, Italy, and Canada are not classified as command economies, they are considered market economies with varying degrees of government intervention.

Question 17

A copyright grants the inventor of a new product or process exclusive right to the manufacture,use,or sales of that invention.

Accepted Answer

A copyright is a legal protection for original works of authorship such as literary, musical, or artistic works. A patent grants the inventor of a new product or process exclusive right to the manufacture, use, or sales of that invention.

Question 18

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

Accepted Answer

In a pure command economy, the government fully controls the production, quantity, and prices of goods and services.

Question 19

Public action of property rights refers to theft,piracy,and blackmail.

Accepted Answer

Public action of property rights typically refers to government actions such as regulation, taxation, or expropriation, not to illegal activities like theft, piracy, and blackmail.

Question 20

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

Accepted Answer

This is the definition and purpose of a patent.

Quiz 2: Country Differences in Political Economy