Question 1

Which of the following is a typical function of a trademark?

Accepted Answer

A)  It marks the sales territory for which individual salespeople are assigned.
B)  It restrains authors, composers, playwrights, artists, and publishers from trading their creative work.
C)  It signifies that a country is a member of the World Trade Organization.
D)  It acts as a permit to expand a business globally.
E)  It allows merchants or manufacturers to designate and differentiate their products.F) All of the above
G) A) and E)

Question 2

Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm?

Accepted Answer

A)  Income arising from renting land and buildings
B)  Profits arising from the sale of agricultural crops
C)  Interest earned by lending capital to other firms
D)  Innovations and capabilities, and skills of the employees
E)  Investments made in raw materials and machineryF) A) and E)
G) C) and E)

Question 3

Which of the following statements is true about product safety and liability laws?

Accepted Answer

A)  There are no criminal product liability laws-only civil product liability laws exist.
B)  Liability laws are typically most extensive in less developed nations.
C)  A boom in product liability suits and awards in the United States resulted in a dramatic decrease in the cost of liability insurance.
D)  Product liability can be much greater if a product does not conform to required safety standards.
E)  If product safety laws are tougher in a firm's home country than in a host country, the ethical thing to do is to adhere to host-country standards.F) B) and D)
G) A) and B)

Question 4

In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle?

Accepted Answer

A)  Guaranteeing individual freedom
B)  Government dictating what is in the best interest of society
C)  Guaranteeing self-expression
D)  Committing to private ownership
E)  Treating individual diversity as desirableF) B) and C)
G) A) and B)

Question 5

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?

Accepted Answer

A)  Free market
B)  Deregulated
C)  Pure command
D)  Mixed
E)  Laissez-faireF) None of the above
G) C) and E)

Question 6

Discuss why supply must not be restricted for a pure market economy to function.

Accepted Answer

In a pure market economy, supply must not be restricted. A supply restriction occurs when a single firm monopolizes a market. In such circumstances, rather than increase output in response to increased demand, a monopolist might restrict output and let prices rise. This allows the monopolist to take a greater profit margin on each unit it sells. Although this is good for the monopolist, it is bad for the consumer, who has to pay higher prices. It also is probably bad for the welfare of society. Because a monopolist has no competitors, it has no incentive to search for ways to lower production costs. Rather, it can simply pass on cost increases to consumers in the form of higher prices. The net result is that the monopolist is likely to become increasingly inefficient, producing high-priced, low quality goods, and society suffers as a consequence.

Question 7

A composer can protect an original musical score from being copied and sold by someone else by acquiring for the score a(n) :

Accepted Answer

A)  patent.
B)  warrant.
C)  trademark.
D)  copyright.
E)  affidavit.F) B) and D)
G) C) and D)

Question 8

Plato did not equate collectivism with equality.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following does the U.S. law and OECD convention allow as an exception?

Accepted Answer

A)  Bribing a foreign government official to obtain a contract
B)  Failure to keep records that would reveal if a violation of the Foreign Corrupt Practices Act has occurred
C)  Grease payments or speed money
D)  Private action
E)  Breach of the rule of lawF) A) and D)
G) A) and E)

Question 10

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.

Accepted Answer

A) True 
 B)False  False

Question 11

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Accepted Answer

A) True 
 B)False

Question 12

In the context of property rights, which of the following refers to theft, piracy, blackmail, and the like by private individuals or groups?

Accepted Answer

A)  Private consumption
B)  Private practice
C)  Privacy tort
D)  Private action
E)  Privacy violationF) C) and D)
G) A) and D)

Question 13

When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.

Accepted Answer

A) True 
 B)False

Question 14

A legal system which is based primarily on religious teachings is referred to as a:

Accepted Answer

A)  civil law system.
B)  theocratic law system.
C)  common law system.
D)  precedent law system.
E)  public law system.F) C) and D)
G) A) and E)

Question 15

What are grease payments? Are they acceptable by the U.S. law and OECD convention?

Accepted Answer

Grease payments are facilitating or expe...

Question 16

The Cold War was in many respects a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

A)  Collectivism
B)  Totalitarianism
C)  Individualism
D)  Communism
E)  SocialismF) B) and C)
G) D) and E)

Question 18

A common feature of many right-wing dictatorships is:

Accepted Answer

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.F) A) and E)
G) C) and E) C

Question 19

The sale of state-owned enterprises to independent, nonpublic investors is referred to as:

Accepted Answer

A)  privatization.
B)  nationalization.
C)  collectivism.
D)  communalism.
E)  public action.F) D) and E)
G) B) and E)

Question 20

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute:

Accepted Answer

A)  assets which receive no protection under law.
B)  non-performing assets.
C)  tangible assets.
D)  intellectual property.
E)  real property.F) C) and D)
G) A) and E)

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

Which of the following is a typical function of a trademark?

Correct Answer
verified

Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm?

Correct Answer
verified

Which of the following statements is true about product safety and liability laws?

Correct Answer
verified

In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle?

Correct Answer
verified

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?

Correct Answer
verified

Discuss why supply must not be restricted for a pure market economy to function.

A composer can protect an original musical score from being copied and sold by someone else by acquiring for the score a(n) :

Correct Answer
verified

Plato did not equate collectivism with equality.

Correct Answer
verified

Which of the following does the U.S. law and OECD convention allow as an exception?

Correct Answer
verified

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.

Correct Answer
verified
False

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Correct Answer
verified

In the context of property rights, which of the following refers to theft, piracy, blackmail, and the like by private individuals or groups?

Correct Answer
verified

When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.

Correct Answer
verified

A legal system which is based primarily on religious teachings is referred to as a:

Correct Answer
verified

What are grease payments? Are they acceptable by the U.S. law and OECD convention?

Correct Answer
verified
Grease payments are facilitating or expe...
View Answer

The Cold War was in many respects a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.

Correct Answer
verified

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?

Correct Answer
verified

A common feature of many right-wing dictatorships is:

Correct Answer
verified
C

The sale of state-owned enterprises to independent, nonpublic investors is referred to as:

Correct Answer
verified

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute:

Correct Answer
verified

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

Which of the following is a typical function of a trademark?

Correct AnswerverifiedShow Answer

Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm?

Correct AnswerverifiedShow Answer

Which of the following statements is true about product safety and liability laws?

Correct AnswerverifiedShow Answer

In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Discuss why supply must not be restricted for a pure market economy to function.

A composer can protect an original musical score from being copied and sold by someone else by acquiring for the score a(n) :

Correct AnswerverifiedShow Answer

Plato did not equate collectivism with equality.

Correct AnswerverifiedShow Answer

Which of the following does the U.S. law and OECD convention allow as an exception?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedFalse

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Correct AnswerverifiedShow Answer

In the context of property rights, which of the following refers to theft, piracy, blackmail, and the like by private individuals or groups?

Correct AnswerverifiedShow Answer

When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.

Correct AnswerverifiedShow Answer

A legal system which is based primarily on religious teachings is referred to as a:

Correct AnswerverifiedShow Answer

What are grease payments? Are they acceptable by the U.S. law and OECD convention?

Correct AnswerverifiedGrease payments are facilitating or expe...View AnswerShow Answer

The Cold War was in many respects a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

A common feature of many right-wing dictatorships is:

Correct AnswerverifiedC

The sale of state-owned enterprises to independent, nonpublic investors is referred to as:

Correct AnswerverifiedShow Answer

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Grease payments are facilitating or expe...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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