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1 | |
When the needs of society as a whole are considered more important than individual freedoms, a country probably follows a system of |
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| | A) | collectivism |
| | B) | totalitarianism |
| | C) | communism |
| | D) | individualism |
| | E) | Marxism |
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2 | |
The term political economy refers to |
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| | A) | the role of politics in a nation's economy |
| | B) | the interaction between political and economic issues in a country |
| | C) | the system of government in a country |
| | D) | the political, economic, and legal systems of a country |
| | E) | the degree to which a nation favors collectivism over individualism |
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3 | |
In countries following ________ totalitarianism, political power is monopolized by a party, group, or individual that governs according to religious principles. |
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| | A) | communist |
| | B) | theocratic |
| | C) | tribal |
| | D) | right-wing |
| | E) | left-wing |
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4 | |
In a __________ economy, the interaction of supply and demand determine the quantity in which goods and services are produced. |
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| | A) | mixed |
| | B) | state-directed |
| | C) | command |
| | D) | hybrid |
| | E) | market |
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5 | |
A system of law that is based on tradition, precedent, and custom is a |
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| | A) | theocratic law system |
| | B) | contract law system |
| | C) | civil law system |
| | D) | customary law system |
| | E) | common law system |
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6 | |
The body of law that governs contract enforcement is known as |
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| | A) | a common law system |
| | B) | a civil law system |
| | C) | theocratic law system |
| | D) | contract law system |
| | E) | customary law system |
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7 | |
Designs and names by which merchants or manufacturers design and differentiate their products are called |
|
| | A) | trademarks |
| | B) | copyrights |
| | C) | patents |
| | D) | legal rights |
| | E) | ownership rights |
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8 | |
When a government removes restrictions concerning the conduct of a business, _________ has occurred. |
|
| | A) | privatization |
| | B) | state planning |
| | C) | deregulation |
| | D) | economic transformation |
| | E) | democratic revolution |
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9 | |
A country's inflation rate and level of business and government debt are indicators of a nation's |
|
| | A) | legal risk |
| | B) | political risk |
| | C) | economic risk |
| | D) | market risk |
| | E) | investment risk |
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10 | |
When the India passed its law in the 1970s requiring all foreign investors to enter into joint ventures with Indian partners, firms such as Coca-Cola and IBM that had investments in the country faced |
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| | A) | political risk |
| | B) | economic risk |
| | C) | market risk |
| | D) | legal risk |
| | E) | investment risk |
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11 | |
Because their agendas are so similar, communists and social democrats often join forces to achieve particular goals. |
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| | A) | True |
| | B) | False |
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12 | |
A strong representative democracy is critical to the success of a totalitarian government. |
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| | A) | True |
| | B) | False |
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13 | |
In mixed economies troubled firms whose continued operation is considered to be vital to national interests may be taken over by the government. |
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| | A) | True |
| | B) | False |
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14 | |
The most widely practiced theocratic legal system in the modern world is Islamic law. |
|
| | A) | True |
| | B) | False |
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15 | |
Bangladesh is perceived to be one of the least corrupt countries in the world. |
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| | A) | True |
| | B) | False |
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16 | |
Toys "R" Us's strategy of establishing large warehouse-style toy stores and then engaging in heavy advertising and price discounting to sell the merchandise is a form of innovation. |
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| | A) | True |
| | B) | False |
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17 | |
The political economy of the 21st century has been shaped by the spread of democracy and a move away from centrally planned and mixed economies toward a more free market economic model. |
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| | A) | True |
| | B) | False |
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18 | |
According to many analysts, Taiwan's economic difficulties are a result of state ownership of much of the country's corporations. |
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| | A) | True |
| | B) | False |
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19 | |
First mover advantages are the advantages that accrue to early entrants into a market. |
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| | A) | True |
| | B) | False |
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20 | |
Political risk is the likelihood that a trading partner will opportunistically break a contract or expropriate intellectual property rights. |
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| | A) | True |
| | B) | False |