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c2 Key
1. The term political economy is used to stress the fact that the political, economic, and legal systems of a
country are independent of each other.
2. Political systems that emphasize collectivism tend to be democratic, while political systems that place a high
value on individualism tend to be totalitarian.
3. Plato did not equate collectivism with equality.
4. Karl Marx advocated state ownership of the basic means of production, distribution, and exchange (i.e.,
businesses).
5. The social democrats believed that socialism could be achieved only through violent revolution and
totalitarian dictatorship.
6. By the mid-1990s, communism was rising worldwide.
7. One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their
own economic self-interest.
8. In practical terms, individualism translates into an advocacy for democratic ideals and free market
economics.
9. The Cold War was in many respects a war between collectivism, championed by the former Soviet Union,
and individualism, championed by the United States.
10. In practical terms, collectivism creates a more favorable environment for international businesses to operate
in than individualism.
11. In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an
individual's right to freedom of expression and organization, a free media, and regular elections—are denied to
the citizens.
12. In most democratic states, those who question the right of the rulers to rule find themselves imprisoned, or
worse.
13. The governments of China, Vietnam, and Laos are communist in name only because those nations have
adopted wide-ranging, market-based economic reforms.
14. All right-wing dictatorships display an affinity toward socialist or communist ideas.
15. 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 dictated by the interaction of demand and supply.
16. Command economies provide a more favorable environment for innovation and entrepreneurs than market
economies.
17. A common law system tends to be less adversarial than a civil law system.
18. When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.
19. Judges under a civil law system have less flexibility than those under a common law system.
20. Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.
21. Compared to a common law system, it is more expensive to draw up contracts in a civil law jurisdiction.
22. By adopting the Contracts for the International Sale of Goods (CIGS), a nation signals to other adopters that
it will treat the convention's rules as part of its law.
23. When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for
arbitration by a recognized arbitration court to settle contract disputes.
24. Intellectual property laws stimulate innovation and creative work.
25. The term "public action" refers to the exclusive legal rights of authors, composers, playwrights, artists, and
publishers to publish and disperse their work as they see fit.
26. Liability laws are typically the least extensive in highly developed nations.
27. When product safety laws are tougher in a firm's home country than in a foreign country, the ethical thing to
do is to adhere to home-country standards.
28. The benefits, costs, and risks associated with doing business in a country are independent of that country's
political, economic, and legal systems.
29. Other things being equal, a nation with democratic political institutions is clearly more attractive as a place
in which to do business than a nation that lacks democratic institutions.
30. Which of the following systems is a part of the political economy?
31. Which of the following statements is true about political systems?
32. The needs of society as a whole are generally viewed as being more important than individual freedoms
when the emphasis is on:
33. In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the
basis that it runs counter to "the common good." In this context, which of the following is most likely to be the
political system adopted by Normian Republic?
34. A person who believes in public ownership of the means of production for the common good of society is
a(n):
35. Modern socialism traces its intellectual roots to:
36. Which of the following was advocated by Karl Marx?
37. In the early twentieth century, the socialist ideology split into two broad camps and the people who believed
that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to
as:
38. Those who attempt to achieve the same ideologies as that of the communists without violent revolution and
totalitarian dictatorship are:
39. Which of the following is inconsistent with Marxist philosophy?
40. Which of the following is true about communism?
41. The sale of state-owned enterprises to independent, nonpublic investors is referred to as:
42. Which of the following can be traced to the ancient Greek philosopher Aristotle?
43. The Cedian government believes that its citizens should have complete freedom in their economic and
political pursuits, and the Cedian ideology is "private profit over public good." In this context, it can be said that
Cedia most likely follows the philosophy of:
44. In the context of individualism, which of the following is inconsistent with the works of the ancient Greek
philosopher Aristotle?
45. Which of the following is most likely to be advocated by individualism?
46. In practical terms, which of the following translates into an advocacy for democratic ideals and free market
economics, which in general creates the most favorable environment for international businesses to operate in?
47. Democracy, in its purest form, is based on the belief that:
48. Which of the following is a form of government in which one person or political party exercises absolute
control over all spheres of human life and prohibits opposing political parties?
49. Which of the following is a feature of representative democracy?
50. Which of the following applies to most totalitarian states?
