49) What is a form of totalitarianism that advocates that socialism can be achieved only through a
totalitarian dictatorship?
A) tribal totalitarianism
B) democratic totalitarianism
C) communist totalitarianism
D) theocratic totalitarianism
E) right-wing totalitarianism
50) Nations that limit the freedom of religious expression with laws based on religious principles
follow the political system of
A) theocratic totalitarianism.
B) communist totalitarianism.
C) right-wing totalitarianism.
D) pure democracy.
E) representative democracy.
51) A totalitarian political system in which a party, group, or individual that represents the interests
of a particular tribe monopolizes political power is referred to as
A) theocratic totalitarianism.
B) communist totalitarianism.
C) right-wing totalitarianism.
D) tribal totalitarianism.
E) democratic totalitarianism.
52) Right-wing totalitarianism restricts political freedom so as to inhibit the rise of
A) a pure democracy.
B) communism.
C) free market capitalism.
D) representative democracy.
E) tribal totalitarianism.
53) The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted
A) right-wing totalitarianism.
B) theocratic totalitarianism.
C) representative democracy.
D) pure democracy.
E) totalitarian democracy.
54) A common feature of many right-wing dictatorships is
A) total restriction on individual economic freedom.
B) strong commitment to socialist or communist ideas.
C) governments that are made up of military officers.
D) politicians from a particular tribe dominating the political system.
E) the direct involvement of the citizens in decision making.
55) What are the three broad forms of economic systems?
A) laissez-faire, authoritarian, egalitarian
B) market, command, and mixed
C) local, state, federal
D) ethical, political, radical
E) individualist, collectivist, majoritarian
56) An economic system in which the interaction of supply and demand determines the quantity in
which goods and services are produced is called a ________ system.
A) barter
B) command
C) market
D) regulated
E) centrally planned
57) In order for a market economy to work, it is important that supply of a product must not be
restricted by a producer. In other words, ________ must be banned.
A) tariffs
B) start-ups
C) monopolies
D) globalization
E) nationalism
58) Which type of economy was found in communist countries where the government determined
what would be produced and the price it would be sold for?
A) mixed
B) market
C) egalitarian
D) command
E) majoritarian
59) In what type of economy are all businesses state-owned, the rationale being that the
government can then direct them to make investments that are in the best interests of the nation as
a whole rather than in the interests of private individuals?
A) free market
B) deregulated
C) pure command
D) mixed
E) laissez-faire
60) In comparison to market economies, command economies lack
A) government interference in allocation of resources.
B) dynamism and innovation.
C) concern for the interests of the nation.
D) commitment to communism.
E) any opposition to private ownership.
61) 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.
A) command
B) pure market
C) mixed
D) centrally planned
E) laissez-faire
62) In 2008, the U.S. government stepped in to help some failing financial institutions as a way to
prevent further collapse of the economy. Typically, the U.S. government does not interfere in these
situations. What type of economy does this exemplify?
A) command
B) centrally planned
C) pure market
D) mixed
E) laissez-faire
63) When comparing the three broad types of economic systems, it can be said that
A) for a pure market economy to function efficiently, product supply must be restricted.
B) in a command economy, state-owned enterprises have little incentive to control costs and be
efficient.
C) the sole role of government in a command economy is to encourage vigorous free and fair
competition between private producers.
D) mixed economies were once uncommon throughout much of the world, although they are
becoming more popular now.
E) production in command economies is determined by the interaction of supply and demand and
signaled to producers through the price system.
64) The government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to
save the company from bankruptcy. However, the other private competitors in the energy industry
were enraged by this decision. As a result, the government had to reduce the tax burden on all
private energy firms so that both the state-owned enterprise and private firms could coexist. What
type of economy does this portray?
A) mixed
B) market-based
C) command
D) laissez-faire
E) communist
65) Collectivist-inclined totalitarian states tend to enact laws that severely restrict private
enterprises, while laws enacted by governments in democratic states, where individualism is the
dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates
that
A) the economic system of a country is independent of its legal system.
B) the legal system of a country is not influenced by the prevailing political system.
C) the legal system does not affect the attractiveness of a country as an investment site or market.
D) all countries have the same legal environments.
E) the legal framework of a country reflects the rulers’ dominant political ideology.
66) The ________ system of a country encompasses the rules that regulate behavior.
A) economic
B) theocratic
C) legal
D) demographic
E) political
67) Which legal system is based on tradition, precedent, and custom?
A) common law
B) civil law
C) autocracy law
D) monarchy law
E) universal law
68) Jonah is a lawyer representing a company in a lawsuit. During the trial, Jonah referred to a
court case from ten years ago and asked the witness if she felt her company had acted in a similar
manner as the company in the previous case. When Jonah referred to the previous court case, he
was relying on ________ to make his case.
A) tradition
B) precedent
C) custom
D) interpretation
E) culture
69) The common law system enjoys a degree of flexibility not found in other systems because
A) it is usually found in democratic republics.
B) it originated from Great Britain and can be found in almost all of its former colonies.
C) it is interpreted by the law courts with regard to tradition, precedent, and custom.
D) it is based on a detailed set of laws organized into codes.
E) it has originated recently—just a decade ago.
70) A ________ law system is based on a detailed set of laws organized into codes.
A) civil
B) theocratic
C) common
D) traditional
E) religious
71) Under a civil law system, it is the responsibility of a judge only to ________ the law.
A) create
B) apply
C) assess
D) interpret
E) change
72) What is the most widely practiced theocratic legal system in the modern world?
A) Christian law
B) Islamic law
C) Jewish law
D) Hindu law
E) Buddhist law
73) Theocratic law systems are based on
A) legal precedent.
B) a detailed set of codes and laws.
C) religious teachings.
D) beliefs of a tribe .
E) beliefs of the ruling class.
74) Jewish law is an example of what type of law system?
A) autocratic
B) civil
C) common
D) theocratic
E) universal
75) In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the
terms set forth in the document the supplier provided which detailed the rights and obligations of
the supplier and Torc Tools Corp. This document is a type of
A) memoranda.
B) manifesto.
C) contract.
D) white paper.
E) precedent.
76) When comparing contracts in common law and civil law systems, it can be said that
A) contracts drafted under a common law system tend to be longer than those drafted under a civil
law system.
B) contracts drafted under a civil law system tend to be more specific than those drafted under a
civil law system.
C) it is more expensive to draw up contracts in a civil law system than in a common law system.
D) resolving contract disputes tends to be less adversarial in common law systems than in civil law
systems.
E) civil law systems allow for judges to interpret a contract dispute, but this feature is absent in
common law systems.
77) The United Nations created CISG in response to ________ that occur in international trade.
A) contract disputes
B) environmental concerns
C) political uprisings
D) tariff differences
E) foreign exchange rates
78) When firms do not wish to accept the rules of the CISG, what do they often opt for to settle
contract disputes?
A) UN involvement
B) arbitration
C) collective bargaining
D) common law system of the United States
E) Islamic law
79) When considering the legal use of the word, ________ is the term given to a resource over
which an individual or business holds a legal title.
A) liability
B) contract
C) shareholder
D) property
E) possession
80) Theft, piracy, and blackmail by private individuals or groups are examples of
A) private consumption.
B) private practice.
C) privacy tort.
D) private action.
E) privacy norms.
81) After the collapse of communism in Russia, successful business owners often had to pay
“protection money” to the mafia or face violent retribution. In the context of property rights, the
behavior of the mafia is an example of
A) active violation.
B) public action.
C) private action.
D) boundary spanning.
E) industrial espionage.
82) Which scenario is an example of private action?
A) The government of Mexico levying excessive taxes.
B) The U.S. government requiring expensive licenses or state permits from private property
holders.
C) A communist government taking assets into state ownership without compensating the owners.
D) Government bureaucrats demanding bribes from businesses in return for the rights to operate
manufacturing facilities in a country.
E) Business owners in the cell phone industry stealing their competitors’ trade secrets and
intellectual properties.
83) Which situation exemplifies public action?
A) The mafia in Cedia Republic demands “protection money” from successful domestic business
owners.
B) Cedian proprietors in the hospitality industry often complain about protection rackets by
criminal groups.
C) Government bureaucrats demand bribes from international businesses in return for the rights to
operate in Cedia Republic.
D) The Cedian government has been criticized for its inability to curb theft of trade secrets of
international businesses by private domestic owners.
E) To promote the Cedian culture, the government allows movies based on Cedian history to be
made tax-free.
84) Energy for Everyone wanted to establish operations in the country of Imol but decided against
it when officials from Imol demanded a bribe in order for the company to open the office. This
bribe is an example of
A) a market economy.
B) a laissez-faire policy.
C) a public action.
D) a mixed economy.
E) a private action.
85) Which term best represents the relationship between the level of corruption and economic
growth rate in a country?
A) directly proportional
B) inversely proportional
C) independent
D) positive correlation
E) zero correlation
86) In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following
revelations that
A) U.S. companies had bribed government officials in foreign countries in an attempt to win
lucrative contracts.
B) U.S. companies were involved in bribing U.S. government officials in cases related to major
corporate and accounting scandals.
C) U.S. government bureaucrats demanded bribes from U.S. companies in return for a permit to
operate in a foreign country.
D) several companies were selling their products at lower prices in foreign countries than in the
United States.
E) successful business owners in the United States often had to pay “protection money” to the
Mafia or face violent retribution.