Question 1

Many social democratic governments nationalize private companies.

Accepted Answer

Social democratic governments often believe in increased government intervention in the economy, which may include nationalizing private companies. However, not all social democratic governments adopt this policy.

Question 2

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

Accepted Answer

The Foreign Corrupt Practices Act was actually passed in 1977, not during the 1960s.

Question 3

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

Accepted Answer

A patent provides the investor with exclusive rights to the invention for a certain period of time, typically 20 years in the United States. During this time, no one else can manufacture, use, or sell the invention without permission from the patent holder.

Question 4

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 applies to original works of authorship such as books, music, and software, while a patent grants exclusive rights in an invention.

Question 5

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 exercises complete control over the production and distribution of goods and services, making all economic decisions.

Question 6

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 relatively rare in Western Europe and none of the mentioned countries are classified as command economies.

Question 7

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 include legal rights over the use of a resource and any income derived from it.

Question 8

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

Accepted Answer

Public action of property rights refers to government enforcement of property rights, such as through laws and legal systems. Theft, piracy, and blackmail are examples of private actions that violate property rights.

Question 9

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 particular ethnic or tribal group rather than a religious one.

Question 10

There is essentially no relationship between collectivism and socialism.

Accepted Answer

Collectivism and socialism are often associated with each other as they both focus on the importance of the community, but collectivism is a broader term that encompasses various ideologies, including capitalism and anarchism, while socialism is a specific economic and political system.

Question 11

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 12

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 prohibits U.S. companies from making corrupt payments to foreign officials.

Question 13

The Canadian law that prohibits Canadian companies from making "corrupt" payments to foreign officials for the purpose of obtaining or retaining business is the Corruption of Foreign Public Officials and the Implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Accepted Answer

The Corruption of Foreign Public Officials and the Implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions is the Canadian law that prohibits Canadian companies from making "corrupt" payments to foreign officials for the purpose of obtaining or retaining business.

Question 14

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

Accepted Answer

This statement is true. The four major forms of totalitarianism are indeed communist totalitarianism, theocratic totalitarianism, tribal totalitarianism, and right-wing totalitarianism.

Question 15

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 are common law, civil law, and religious law (not theocratic law).

Question 16

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 characterized by a single person or political party having absolute control over all aspects of society, including the political, economic, social, and cultural spheres. Opposing political parties are typically banned or repressed, and dissent is usually not tolerated. Examples include Nazi Germany and the Soviet Union under Stalin.

Question 17

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, production and quantity are not planned by anyone but determined by supply and demand through the price system.

Question 18

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 individual freedom and independence, particularly in economic and political aspects. This stands in contrast to collectivism, which emphasizes the prioritization of the community or group over individual desires or needs.

Question 19

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

Accepted Answer

The answer of There must be no restrictions on supply...

Question 20

A system that stresses the primacy of collective goals over individual goals is called collectivism.

Accepted Answer

Collectivism places emphasis on the needs and goals of the group or community over the needs and desires of the individual.

Quiz 2: Country Differences in Political Economy