Question 1

The values and beliefs of a culture are examples of a formal institution.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a feature of right-wing totalitarianism?

Accepted Answer

A)  It does not curtail an individual's right to freedom of expression and organization. 
B)  It concentrates power in the hands of one or more religious groups. 
C)  It bases its economic policies on communist ideologies. 
D)  It does not allow room for political freedom. 
A)  It does not curtail an individual's right to freedom of expression and organization. 
B)  It concentrates power in the hands of one or more religious groups. 
C)  It bases its economic policies on communist ideologies. 
D)  It does not allow room for political freedom.

Question 3

Opportunism is a source of transaction costs.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of the common law system?

Accepted Answer

A)  It is the oldest legal system in the world. 
B)  It has spread to all English-speaking countries and their (former) colonies. 
C)  It bases its legal judgment primarily on the dominant religion of the country. 
D)  It does not allow interpretations of the law by judges. 
A)  It is the oldest legal system in the world. 
B)  It has spread to all English-speaking countries and their (former) colonies. 
C)  It bases its legal judgment primarily on the dominant religion of the country. 
D)  It does not allow interpretations of the law by judges.

Question 5

The common law tradition is mostly spread in non-English speaking countries.

Accepted Answer

A) True 
 B)False

Question 6

Transition economies have static institutions.

Accepted Answer

A) True 
 B)False

Question 7

The cultural school of thought in economic development suggests that rich countries tend to be endowed with natural resources.

Accepted Answer

A) True 
 B)False

Question 8

Cognitive pillar is the coercive power of governments.

Accepted Answer

A) True 
 B)False

Question 9

Institutional framework pertains only to a firm's behavior.

Accepted Answer

A) True 
 B)False

Question 10

Contracts in civil law countries tend to be long and detailed compared to contracts in common law countries.

Accepted Answer

A) True 
 B)False

Question 11

Identify the basic characteristics of formal and informal institutions.

Accepted Answer

An institutional framework is made up of

Question 12

Economic systems are examples of formal institutions.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would be an example of a force majeure defense for a seller?

Accepted Answer

A)  If the seller decides to stop delivery out of fear of nonpayment 
B)  If the customer has already accepted nonconforming goods 
C)  If the goods to be delivered are destroyed in an earthquake 
D)  If the seller places warranties on the goods 
A)  If the seller decides to stop delivery out of fear of nonpayment 
B)  If the customer has already accepted nonconforming goods 
C)  If the goods to be delivered are destroyed in an earthquake 
D)  If the seller places warranties on the goods

Question 14

Islamic law is the only surviving example of a theocratic legal system that is formally practiced by some existing governments.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a proposition of the institution-based view?

Accepted Answer

A)  Decisions based on bounded rationality should be avoided. 
B)  Dependency on informal constraints will always increase the political risks associated with a firm. 
C)  When formal constraints are unclear, informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms. 
D)  Informal constraints always increases transaction costs for the firm. 
A)  Decisions based on bounded rationality should be avoided. 
B)  Dependency on informal constraints will always increase the political risks associated with a firm. 
C)  When formal constraints are unclear, informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms. 
D)  Informal constraints always increases transaction costs for the firm.

Question 16

_____ are exclusive legal rights of authors and publishers to publish and disseminate their work.

Accepted Answer

A)  Patents 
B)  Trademarks 
C)  Copyrights 
D)  Trade secrets 
A)  Patents 
B)  Trademarks 
C)  Copyrights 
D)  Trade secrets

Question 17

Force majeure is a method of interpreting a statute by understanding the legislative history leading up to the adoption of that statute.

Accepted Answer

A) True 
 B)False

Question 18

An institutional framework is made up of formal and informal institutions governing individual and firm behavior.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of a command economy?

Accepted Answer

A)  All factors of production are privately owned. 
B)  The government only performs those functions that the private sector cannot perform. 
C)  It does not allow private entrepreneurship. 
D)  It strictly follows the doctrine of laissez faire. 
A)  All factors of production are privately owned. 
B)  The government only performs those functions that the private sector cannot perform. 
C)  It does not allow private entrepreneurship. 
D)  It strictly follows the doctrine of laissez faire.

Question 20

According to the institution-based view,managers and firms make choices outside institutional constraints.

Accepted Answer

A) True 
 B)False

The values and beliefs of a culture are examples of a formal institution.

Which of the following is a feature of right-wing totalitarianism?

Opportunism is a source of transaction costs.

Which of the following is true of the common law system?

The common law tradition is mostly spread in non-English speaking countries.

Transition economies have static institutions.

The cultural school of thought in economic development suggests that rich countries tend to be endowed with natural resources.

Cognitive pillar is the coercive power of governments.

Institutional framework pertains only to a firm's behavior.

Contracts in civil law countries tend to be long and detailed compared to contracts in common law countries.

Identify the basic characteristics of formal and informal institutions.

Economic systems are examples of formal institutions.

Which of the following would be an example of a force majeure defense for a seller?

Islamic law is the only surviving example of a theocratic legal system that is formally practiced by some existing governments.

Which of the following is a proposition of the institution-based view?

_____ are exclusive legal rights of authors and publishers to publish and disseminate their work.

Force majeure is a method of interpreting a statute by understanding the legislative history leading up to the adoption of that statute.

An institutional framework is made up of formal and informal institutions governing individual and firm behavior.

Which of the following is true of a command economy?

According to the institution-based view,managers and firms make choices outside institutional constraints.

Globalizing Business

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 2: Understanding Formal Institutions: Politics, laws, and Economics

The values and beliefs of a culture are examples of a formal institution.

Which of the following is a feature of right-wing totalitarianism?

Opportunism is a source of transaction costs.

Which of the following is true of the common law system?

The common law tradition is mostly spread in non-English speaking countries.

Transition economies have static institutions.

The cultural school of thought in economic development suggests that rich countries tend to be endowed with natural resources.

Cognitive pillar is the coercive power of governments.

Institutional framework pertains only to a firm's behavior.

Contracts in civil law countries tend to be long and detailed compared to contracts in common law countries.

Identify the basic characteristics of formal and informal institutions.

Economic systems are examples of formal institutions.

Which of the following would be an example of a force majeure defense for a seller?

Islamic law is the only surviving example of a theocratic legal system that is formally practiced by some existing governments.

Which of the following is a proposition of the institution-based view?

_____ are exclusive legal rights of authors and publishers to publish and disseminate their work.

Force majeure is a method of interpreting a statute by understanding the legislative history leading up to the adoption of that statute.

An institutional framework is made up of formal and informal institutions governing individual and firm behavior.

Which of the following is true of a command economy?

According to the institution-based view,managers and firms make choices outside institutional constraints.

Globalizing Business

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters