Question 1

The _____ believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Accepted Answer

The communists believed that socialism could be achieved only through violent revolution and totalitarian dictatorship, whereas the social democrats committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship.

Question 2

Modern socialists trace their intellectual roots to _____, although socialist thought clearly predates this individual.

Accepted Answer

Modern socialists trace their intellectual roots to Karl Marx (1818-1883), although socialist thought clearly predates Marx (elements of it can be traced to Plato).

Question 3

In response to increased demand, what is a monopolist likely to do?

Accepted Answer

A supply restriction occurs when a single firm monopolizes a market. In such circumstances, rather than increase output in response to increased demand, a monopolist might restrict output and let prices rise. This allows the monopolist to take a greater profit margin on each unit it sells.

Question 4

Why did Karl Marx criticize capitalism? Describe how he planned to correct those shortcomings.

Accepted Answer

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Question 5

A law system that is based on a 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

The term used to describe a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties.

Accepted Answer

Many of the world's nations are neither pure democracies nor iron-clad totalitarian states. Rather they lie between pure democracies and complete totalitarian systems of government. They might be described as imperfect or pseudo-democracies, where authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties.

Question 7

When _____ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

Accepted Answer

When collectivism is emphasized, the needs of society as a whole are generally viewed as being more important than individual freedoms. In such circumstances, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" or to "the common good."

Question 8

Who was the author of The Wealth of Nations in which it is stated that an individual who intends his own gain is led by an invisible hand to promote an end that was not part of his intention?

Accepted Answer

The second tenet of individualism is that the welfare of society is best served by letting people pursue their own economic self-interest, as opposed to some collective body (such as government) dictating what is in society's best interest. Or, as Adam Smith put it in a famous passage from The Wealth of Nations, an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention.

Question 9

Although many countries have stringent intellectual property regulations on their books, the enforcement of these regulations has often been lax. This has been the case even among many of the 185 countries that are now members of the _____, all of which have signed international treaties designed to protect intellectual property.

Accepted Answer

Although many countries have stringent intellectual property regulations on their books, the enforcement of these regulations has often been lax. This has been the case even among many of the 185 countries that are now members of the World Intellectual Property Organization, all of which have signed international treaties designed to protect intellectual property, including the oldest such treaty, the Paris Convention for the Protection of Industrial Property, which dates to 1883 and has been signed by more than 170 nations.

Question 10

In the 1970s, the United States _____ which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred.

Accepted Answer

The Foreign Corrupt Practices Act requires all publicly traded companies (whether or not they are involved in international trade) to keep detailed records that would reveal whether a violation of the act has occurred.

Question 11

_____ occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.

Accepted Answer

Tribal totalitarianism has arisen from time to time in African countries such as Zimbabwe, Tanzania, Uganda, and Kenya. The borders of most African states reflect the administrative boundaries drawn by the old European colonial powers rather than tribal realities. Consequently, the typical African country contains a number of tribes (e.g., in Kenya there are more than 40 tribes). Tribal totalitarianism occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.

Question 12

Compare and contrast the four forms of totalitarianism.

Accepted Answer

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Question 13

Discuss individualism. Explain the key positions of the philosophy, it roots, and its role in the modern economy.

Accepted Answer

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Question 14

Plato _____; he believed that society should be stratified into classes, with those best suited to rule.

Accepted Answer

Advocacy of collectivism can be traced to the ancient Greek philosopher Plato. Plato did not equate collectivism with equality; he believed that society should be stratified into classes, with those best suited to rule (which for Plato, naturally, were philosophers and soldiers) administering society for the benefit of all.

Question 15

What are state-owned companies? Why do they usually perform poorly?

Accepted Answer

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Question 16

The _____ associated with doing business in a country are a function of that country's political, economic, and legal systems.

Accepted Answer

The political, economic, and legal environments of a country clearly influence the attractiveness of that country as a market or investment site. The benefits, costs, and risks associated with doing business in a country are a function of that country's political, economic, and legal systems.

Question 17

Compare and contrast a pure democracy and a representative democracy. Which type of democracy is more common today? Why?

Accepted Answer

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Question 18

In 2008, the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of?

Accepted Answer

In mixed economies, governments tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. For example, in 2008 the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system.

Question 19

The term _____ stresses that the political, economic, and legal systems of a country are interdependent.

Accepted Answer

The term political economy stresses that the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so, they affect the level of economic well-being.

Question 20

Discuss collectivism. What ideals does the philosophy support? Where did the philosophy start? How does collectivism exist in the modern world?

Accepted Answer

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