Deck 3: Political Economy and Ethics

Question 1

Democracies try to preserve peaceful coexistence among groups of people with diverse cultural,ethnic,and racial backgrounds.These rights are known as ________ rights.

A) indirect
B) central
C) subcapital
D) minority

Answer 1

D

Question 2

Renzi belongs to a country in which religion governs all aspects of his life,whether personal or public.He has to abide by a strict,rigid,code that dictates everything from the clothes he wears to the food he eats.Breaking away from these traditions is not an option since religion plays an important role in the functioning of the nation.What political system prevails in his country?

A) communist totalitarianism
B) left-wing totalitarianism
C) right-wing totalitarianism
D) theocratic totalitarianism

Answer 2

D

Question 3

________ is a political system in which political leaders rely on military and bureaucratic power to support their rule.

A) Secular totalitarianism
B) Secular anarchism
C) Theocratic totalitarianism
D) Theocratic pluralism

Answer 3

A

Question 4

A ________ is a political system in which a country's religious leaders serve as its political leaders.

A) democracy
B) theocracy
C) plutocracy
D) septocracy

Question 5

A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.

A) democracy
B) theocracy
C) plutocracy
D) autocracy

Question 6

Which of the following is a characteristic of totalitarian governments?

A) Political dissidents can oppose the government with no repercussions.
B) Citizens are guaranteed civil, property, and minority rights.
C) The means of production are owned by the people who use them.
D) Leaders rule without the explicit approval of the people.

Question 7

________ is the belief that both private and public groups play important roles in a nation's political activities.

A) Totalitarianism
B) Capitalism
C) Anarchism
D) Pluralism

Question 8

In a ________ government,the strongest political parties share power by dividing government responsibilities among themselves.

A) coalition
B) bilateral
C) totalitarian
D) theocratic

Question 9

Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective?

A) totalitarianism
B) capitalism
C) anarchism
D) pluralism

Question 10

In a totalitarian political system,________.

A) political power resides with the citizens of the country
B) governments direct most economic activity but few social ones
C) an individualistic outlook shapes political debate and policy formation
D) one agent monopolizes political power

Question 11

Which of the following statements about representative democracies is true?

A) All citizens participate freely and actively in political processes.
B) Leaders of representative democracies can stay in power indefinitely.
C) Citizens elect individuals from political groups to act on their behalf.
D) Representative democracies across the world share identical features.

Question 12

Which of the following terms is also used to refer to communism?

A) tribal totalitarianism
B) right-wing totalitarianism
C) left-wing totalitarianism
D) civil totalitarianism

Question 13

________ political systems include democracies,constitutional monarchies,and some aristocracies.

A) Totalitarian
B) Anarchist
C) Fascist
D) Pluralistic

Question 14

Under ________,the government endorses private ownership of property and a market-based economy but grants little or no political freedom.

A) left-wing totalitarianism
B) theocratic totalitarianism
C) secular totalitarianism
D) right-wing totalitarianism

Question 15

Totalitarian political systems include authoritarian regimes such as ________.

A) democracy and theocracy
B) anarchism and pluralism
C) communism and fascism
D) capitalism and secularism

Question 16

________ is the belief that only individuals and private groups should control a nation's political activities.

A) Pluralism
B) Anarchism
C) Theocracy
D) Totalitarianism

Question 17

Which of the following is an advantage of conducting business in totalitarian nations?

A) International companies are less likely to face local political opposition to their activities.
B) Government deals are always straightforward and transparent.
C) Laws regarding the resolution of contractual disputes are clearly defined.
D) International companies run no risk of their public image being tarnished.

Question 18

Konesia is a country whose political leaders do not tolerate opposing viewpoints and often suppress or punish dissidents.The lives of Konesians are tightly controlled by its rulers.Which of the following political systems prevails in the country?

A) totalitarianism
B) democracy
C) anarchism
D) pluralism

Question 19

In ________ cultures,economic systems tend to provide incentives and rewards for a person's private business initiatives.

A) individualist
B) high uncertainty avoidance
C) feminine
D) large power distance

Question 20

Which of the following is a disadvantage of conducting business in totalitarian nations?

A) Laws regarding the resolution of contractual disputes are rigid and inflexible.
B) Companies have to contend with the interference of local political opposition.
C) A refusal to pay a bribe can result in the forfeiture of investments in the country.
D) The government has little power over the economic activities of the nation.

Question 21

Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.

Question 22

Pluralism is the the belief that both private and public groups play important roles in a nation's political activities.

Question 23

In a coalition government,the strongest political parties share power by dividing government responsibilities among themselves.

Question 24

Anarchism is the belief that every aspect of people's lives must not be controlled in order for a nation's political system to be effective.

Question 25

A political system in which a country's religious leaders are also its political leaders is called a theocracy.

Question 26

Secular totalitarianism is a political system in which government leaders are elected directly by the wide participation of the people or their representatives.

Question 27

The government maintains control over the banking industry in a country.Which of the following is most likely true if the country has a mixed economy?

A) Businesses in most economic sectors of the country are privately owned.
B) The government considers banking sector as important to national security.
C) The country has never experienced threats against its long-term stability.
D) The government views banking as more important than manufacturing.

Question 28

In a totalitarian system,rulers tightly control people's lives and do not tolerate opposing viewpoints.

Question 29

Compare and contrast two prevalent political systems: totalitarianism and democracy,and explain how a country's political system influences its legal system.

Question 30

Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan decides not to set up production facilities in Konesia because its business laws are vague and are often interpreted according to the convenience of the government.Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option.What kind of government does Konesia have?

A) democratic
B) theocratic
C) totalitarian
D) pluralist

Question 31

The bureaucracy is the part of government that implements the rules and laws passed by elected representatives.

Question 32

Pluralism is a political system in which political leaders rely on military and bureaucratic power.

Question 33

Central planning is rooted in the ideology that ________.

A) the welfare of a group is more important than individual well-being
B) individual concerns should be placed above group consensus
C) individual and group concerns are just as important as government concerns
D) privatization will enhance a country's economic well-being

Question 34

The most peaceful nations today are those that were never controlled and stabilized by colonial powers.

Question 35

Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan also decides not to set up production facilities in Margazo,a country which functions by a strict set of religious tenets,because some of them contradict her company's work policy.Expecting potential employees to break away from these traditions is not an option since religion plays an important role in the functioning of the nation.What kind of political system prevails in Margazo?

A) pluralistic
B) theocracy
C) tribal totalitarian
D) democracy

Question 36

Compare and contrast the world's three main political ideologies: anarchism,totalitarianism,and pluralism.

Question 37

Totalitarian governments tend to favor government ownership of economic resources.

Question 38

Pluralistic political systems include democracies,constitutional monarchies,and some aristocracies.

Question 39

Which of the following do governments impose upon people to help pay for the consequences of using a particular product?

A) income taxes
B) consumption taxes
C) property taxes
D) value-added taxes

Question 40

Communists are socialists,but socialists are not necessarily communist.

Question 41

In a market economy,the patterns of resource allocation are most directly influenced by ________.

A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C) consumer group alliances that negotiate with firms to improve product quality
D) consumers who "vote" by their personal decision to buy or not buy products

Question 42

What do communists and socialists have in common?

A) Both believe in the elimination of political opponents.
B) Both believe that the government should control all types of economic activity.
C) Both believe that the pricing of goods should be the responsibility of individuals.
D) Both believe that a violent revolution is necessary to seize control over resources.

Question 43

The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________.

A) political sector
B) private sector
C) democratic sector
D) public sector

Question 44

Explain the benefits and drawbacks of a value-added tax.

Question 45

Describe the three main types of economic systems.

Question 46

Laws designed to prevent companies from fixing prices,sharing markets,and gaining unfair monopoly advantages are called ________.

A) antitrust laws
B) theocratic laws
C) anarchist laws
D) bilateral laws

Question 47

Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity?

A) socialism
B) sovereign nationalism
C) political bureaucracy
D) pluralism

Question 48

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses?

A) capitalism
B) communism
C) tribalism
D) socialism

Question 49

A value-added tax is a tax levied on each party that adds value to a product throughout its production and distribution.

Question 50

________ is a legal system which is based on a detailed set of written rules and statutes that constitute a legal code and it is also based on a codification of what is and is not permissible.

A) International law
B) Civil law
C) Tribal law
D) Common law

Question 51

A legal tradition based on religious teachings is called ________ law.

A) democratic
B) common
C) civil
D) theocratic

Question 52

Both Pat and Terry believe that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity.Which of the following statements proves that Pat is a communist and Terry is a socialist?

A) Unlike Terry, Pat believes that the government should decide the prices at which goods are sold.
B) Unlike Pat, Terry does not believe in the elimination of political opponents.
C) Unlike Terry, Pat believes that the means of production should be owned only by the public.
D) Unlike Pat, Terry believes that a violent revolution is necessary to seize control over resources.

Question 53

In a 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 planned by ________.

A) government officials
B) private industries
C) individual entrepreneurs
D) local trade associations

Question 54

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government.Which term best describes Country X?

A) market economy
B) mixed economy
C) command economy
D) democratic economy

Question 55

The U.S.legal system is largely based on ________.

A) common law
B) social law
C) civil law
D) theocratic law

Question 56

Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan thinks that it would be easiest setting up production facilities in a country whose government leaders are elected directly by the wide participation of the people or by their representatives.Which of the following political systems should the country have?

A) anarchist
B) democratic
C) theocratic
D) fascist

Question 57

Robert believes that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity.However,he does not think of himself as a communist,but as a socialist.Which of the following statements about Robert is true?

A) Robert does not believe that a violent revolution is needed to seize control over resources.
B) Robert does not think that political dissidents should go unpunished.
C) Robert believes that the pricing of goods should be left to the discretion of laborers.
D) Robert believes that the means of production should be owned by the people who use them.

Question 58

________ is based on the cumulative wisdom of judges' decisions on individual cases through history.

A) Common law
B) Civil law
C) Statutory law
D) Bureaucratic law

Question 59

Discuss the factors that contributed to the collapse of centrally planned economies.

Question 60

Discuss the challenges China faces as it continues its experiment on "socialism with Chinese characteristics."

Question 61

Expropriation is best defined as the ________.

A) transference of ownership of resources from private to public sector with no compensation
B) transference of ownership from private to public sector with compensation to private owners for their losses
C) conversion of state-owned property to privately owned property
D) conversion of state-owned property to privately owned property with no compensation

Question 62

Explain the purpose of antitrust laws.How would the Friedman philosophy of corporate social responsibility most likely support a decision by a company to expand internationally into a country with weak antitrust laws? Include a description of the Friedman philosophy in your answer.

Question 63

Product liability laws are those which ________.

A) provide consumers with a wide variety of products at fair prices
B) add value to a product throughout its production and distribution
C) protect people from defective products
D) define the taxation on locally manufactured products

Question 64

________ refers to the transfer of ownership of resources from the private to the public sector.

A) Nationalization
B) Expropriation
C) Federalization
D) Conversion

Question 65

Which of the following is an important factor in forming successful business ventures in China?

A) following the strategies of western countries for establishing business relationships
B) focusing on establishing tight formal contracts
C) giving high importance to written contracts
D) establishing a trusting relationship before proceeding with business

Question 66

Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
Which of the following factors should the legal experts of Wayne's consider while evaluating the legal systems of Paribo and Kirawi?

A) the profits made by local companies in the countries
B) the prevalence of crime in the two countries
C) the resolution of contractual dispute with local vendors
D) the profits made by international companies in other countries

Question 67

On a recent trip to Hong Kong,a group of tourists found several Prada bags being sold on the pavement.They cost only a few dollars and were clearly fake; though they bore the Prada trademark.This is an example of ________.

A) piracy
B) monopolization
C) ethnocentrism
D) nationalization

Question 68

A common law system is based on tradition,judge-made precedent,and usage in which the courts assign a preeminent position to existing case law to guide dispute resolution.

Question 69

Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
Which of the following statements is true of Kirawi,a democratic nation whose legal system is based on common law?

A) The law is based on religious teachings and is enforced by the country's religious leaders.
B) The law is inflexible and is applied the same way in all situations.
C) The law is based on a detailed set of written rules that constitute a legal code.
D) The law is interpreted on the basis of tradition, precedent and usage.

Question 70

Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
The first question that Stephanie expects participants to ask is: "Which is more important for the Chinese,contacts or contracts?" Which of the following is the most effective response Stephanie could give for this question?

A) Contracts are critical because of their extreme importance in Chinese business.
B) Face-to-face communications and personal relationships take priority over written contracts.
C) Non-Chinese businesspeople should take time to agree on a legal contract before developing personal relationships.
D) Business relationships are established only after successful legal dealings are concluded.

Question 71

Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
Which of the following,if true,demonstrates that Kirawi has an unstable business environment?

A) Its business laws are inflexible and cannot be interpreted according to the comfort of government officials.
B) Its government does not enforce product liability laws or protect individual property rights.
C) Its activities are bound by several multilateral agreements conducted with neighboring countries.
D) Its private sector comprises independently owned firms that exist to make profits.

Question 72

A ________ is a right granted to the inventor of a product or process that excludes others from making,using,or selling the invention.

A) patent
B) trademark
C) watertight
D) copyright

Question 73

Explain each of the following terms,giving examples of each: patent,trademark,and copyright.

Question 74

Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
Which of the following statements is true of Paribo,a democratic nation whose legal system is based on civil law?

A) The law is based on religious teachings and is enforced by the country's religious leaders.
B) The law is flexible and its interpretations differ with situations.
C) The law is based on a detailed set of written rules that constitute a legal code.
D) The law is interpreted on the basis of tradition, precedent and usage.

Question 75

Shimmer and Sparkle is an American jewelry store which discovers that several shops in developing countries are selling counterfeited necklaces under their name and label.Which of the following problems are they facing?

A) patent expiration
B) trademark infringement
C) copyright expiration
D) monopolization

Question 76

Which of the following functions does a copyright perform?

A) It protects the trade secrets of an organization, including its business plans.
B) It prevents a company from monopolizing an invention.
C) It distinguishes the product and manufacturers from competitors through distinct words and symbols.
D) It gives creators of original work the freedom to publish or dispose of them as they choose.

Question 77

Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan is worried that San Tarino's demand that she must use locally available raw material and employ local workers might interfere with the quality and efficiency of her business.San Tarino,on the other hand,views this as a way to foster local business activity and lessen regional unemployment.What are these laws called?

A) local content requirements
B) antitrust laws
C) nationalization laws
D) internalization policies

Question 78

Islamic law is the most widely practiced theocratic legal system today.

Question 79

Describe the importance of a nation's legal system,and identify the main differences between the three main types of legal systems.

Question 80

Which of the following statements referring to intellectual property rights and violations is INCORRECT?

A) Richer countries claim looser regulation of intellectual property rights will hinder innovation.
B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO).
C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year.
D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their economic development.