Question 1

Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?

Accepted Answer

A)  socialism 
B)  individualism 
C)  collectivism 
D)  anarchism

Question 2

Safety standards to which a product must adhere are set by

Accepted Answer

A)  safety certifications. 
B)  contract laws. 
C)  product safety laws. 
D)  product liability laws.

Question 3

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

A)  adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions policy 
B)  passed the Foreign Corrupt Practices Act 
C)  joined Transparency International 
D)  joined the Organisation for Economic Co-operation and Development (OEC
D)

Question 4

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

Accepted Answer

A)  Tribal dictatorship 
B)  Communist totalitarianism 
C)  Tribal totalitarianism 
D)  Privatization

Question 5

Who was the author of The Wealth of Nations in which he stated that "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention..."?

Accepted Answer

A)  David Hume 
B)  Adam Smith 
C)  Karl Marx 
D)  John Stuart Mill

Question 6

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

Accepted Answer

A)  David Hume 
B)  Karl Marx 
C)  Adam Smith 
D)  John Stuart Mill

Question 7

The number of command economies has fallen dramatically since the demise of communism in the late 1980s.

Accepted Answer

A) True 
 B)False

Question 8

A common law system is different from a civil law system because

Accepted Answer

A)  a common law system is based on religious teachings, while a civil law system is based on cultural traditions. 
B)  a common law system is very rigid, while a civil law system tends to be more flexible. 
C)  in a common law system a judge relies on legal codes to make rulings, while in a civil law system a judge relies on his intuition and moral reasoning to make judgments. 
D)  in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.

Question 9

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

Accepted Answer

The answer of What are state-owned companies? Why do they...

Question 10

Contracts under a civil law system tend to be very detailed with all contingencies spelled out.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a feature of a democracy?

Accepted Answer

A)  exercise of absolute control by one person or political party 
B)  governance by people or elected representatives 
C)  prohibition of entry to opposing political parties 
D)  complete restriction of individual political freedom

Question 12

A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries.

Accepted Answer

A) True 
 B)False

Question 13

The communists believed that socialism could be achieved by democratic means and turned their backs on violent revolution and dictatorship.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a reason that command economies tend to stagnate?

Accepted Answer

A)  Costs are tightly controlled and business are forced to be efficient rather than dynamic and innovative. 
B)  The abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs. 
C)  All economic resources are mobilized for the public good. 
D)  Individuals in command economy countries lack the skills to be innovative.

Question 15

Product liability can be much lower if a product does not conform to required safety standards.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit?

Accepted Answer

A)  patent 
B)  copyright 
C)  trademark 
D)  license

Question 17

What is a country's legal system? Why is it important to international businesses?

Accepted Answer

The answer of What is a country's legal system? Why...

Question 18

The Republic of Elbow has a command economy, and as such, its objective is to encourage free and fair competition between private producers.

Accepted Answer

A) True 
 B)False

Question 19

Fred wanted to protect his novel from piracy, so he copyrighted it. Patents, copyrights, and trademarks establish ownership rights over intellectual property.

Accepted Answer

A) True 
 B)False

Question 20

In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.

Accepted Answer

A)  mixed economy 
B)  market economy 
C)  collectivist economy 
D)  command economy

Exam 2: National Differences in Political, Economic, and Legal Systems

Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?

Safety standards to which a product must adhere are set by

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.

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

Who was the author of The Wealth of Nations in which he stated that "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention..."?

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

The number of command economies has fallen dramatically since the demise of communism in the late 1980s.

A common law system is different from a civil law system because

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

Contracts under a civil law system tend to be very detailed with all contingencies spelled out.

Which of the following is a feature of a democracy?

A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries.

The communists believed that socialism could be achieved by democratic means and turned their backs on violent revolution and dictatorship.

Which of the following is a reason that command economies tend to stagnate?

Product liability can be much lower if a product does not conform to required safety standards.

Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit?

What is a country's legal system? Why is it important to international businesses?

The Republic of Elbow has a command economy, and as such, its objective is to encourage free and fair competition between private producers.

Fred wanted to protect his novel from piracy, so he copyrighted it. Patents, copyrights, and trademarks establish ownership rights over intellectual property.

In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.