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Chapter 02 Country Differences in Political Economy
1. According to your text, which of the following is not a reason why developments in the health sectors were
stunted in India?
A. Production quotas and high tariffs on imports.
B. Access to foreign exchange was unlimited.
C. Investment by foreign firms was severely restricted.
D. Government routinely managed prices.
E. Lack of health professionals
2. Collectively, we refer to political, economic, and legal systems as constituting the _______ economy of a
3. England, France, and Germany all have unique political, economic, and legal systems. A country’s political,
economic, and legal system is collectively referred to as its __________ economy.
4. Political systems can be assessed according to two related dimensions:
A. the degree to which they emphasize individualism opposed to totalitarian and the degree to which they are
individualistic verses democratic
B. the degree to which they are market orientated opposed to production orientated and the degree to which they
are democratic verses individualistic
C. the degree to which they emphasize social democracy opposed to communism and the degree to which they
emphasize collectivism opposed to individualism
D. the degree to which they emphasize collectivism opposed to individualism and the degree to which they are
democratic or totalitarian
E. the degree to which they emphasize capitalism as opposed to communism and the degree to which they
emphasize cultural freedom as opposed to cultural monitoring
5. The two dimensions of political systems are interrelated; systems that emphasize _______ tend towards
totalitarianism, while systems that place a high value on _______ tend to be democratic.
A. individualism; collectivism
B. collectivism; individualism
C. socialism; individualism
D. individualism; socialism
E. theocracy; capitalism
6. __________ refers to a system that stresses the primacy of collective goals over individual goals.
7. When __________ is practiced, the needs of society as a whole are generally viewed as being more important
than individual freedoms.
8. _______ is consistent with the notion that an individual’s right to do something may be restricted because it
runs counter to “the good of society” or “the common good.”
9. Modern __________ trace their intellectual roots to Karl Marx.
10. The group that believed that socialism could be achieved only through violent revolution and totalitarian
dictatorship were referred to as:
C. Political democrats
11. Followers of socialist ideology who commit themselves to achieving socialism through democratic reforms
B. Social democrats
D. Political democrats
E. New democrats
12. The communist version of socialism reached its high point in the late ________.
13. What country is the last major Communist power left?
D. North Korea
14. Social democracy has had its greatest influence in the following group of countries:
A. Canada, United States, Mexico, and Spain
B. India, Pakistan, Burma, Nepal, Sri Lanka, and Bhutan
C. Brazil, Chile, Uruguay, Ecuador, Columbia, and French Guiana
D. Australia, Britain, France, Germany, Norway, Spain, and Sweden
E. Australia, Columbia, Venezuela, Cambodia, Brazil
15. Experience has demonstrated that state ownership of the means of production:
A. often runs in parallel with the public interest
B. is the most profitable way to organize production
C. is the most efficient way to organize production
D. often runs counter to the public interest
E. leads to increased inefficiency, higher prices and higher taxes
16. Which of the following definitions best describes the concept of individualism?
A. Political system in which an individual is governed by laws created to limit corruption and exploitation
B. Political system in which government is by the people, exercised either directly or through elected
C. Political system that stresses the primacy of collective goals over individual goals
D. Form of government in which one person or political party exercises absolute control over all spheres of
human life and in which opposing political parties are prohibited
E. Political philosophy that an individual should have freedom over his or her economic and political pursuits
17. Which of the following can be traced to an ancient Greek philosopher, Aristotle?
18. In contrast to collectivism, __________ stresses that the interests of the individual should take precedence
over the interests of the state.
19. Individualism is built on two central themes:
A. socialism is the preferred political philosophy and an emphasis on the importance of collective interests over
B. an emphasis on the importance of collective interests over individual interests and the belief that the welfare
of society is best served by letting a collective body determine what is in society’s best interest rather than
C. the needs of society as a whole are more important than individual freedoms and the welfare of society is
best served by letting a collective body determine what is in society’s best interest rather than individuals
D. the public good is more important than corporate profits and the people exist to serve the state
E. an emphasis on the importance of guaranteeing individual freedom and self expression and the belief that the
welfare of society is best served by letting people pursue their own economic self-interest
20. The Cold War was essentially a war between __________, championed by the now-defunct Soviet Union,
and __________, championed by the United States.
A. collectivism; individualism
B. democracy; socialism
C. socialism; totalitarianism
D. individualism; collectivism
E. Stalinism; Reaganism
21. Which of the following is the political system in which government is by the people, exercised either
directly or through elected representatives?
22. __________ is a form of government in which one person or political party exercises absolute control over
all spheres of human life, and opposing political parties are prohibited.
23. _______ go “hand-in-hand.”
A. Anarchy and individualism
B. Collectivism and individualism
C. Totalitarianism and democracy
D. Democracy and collectivism
E. Democracy and individualism
24. A political system in which citizens periodically elect individuals to represent them is referred to as a
A. participatory collective
B. totalitarianism democracy
C. representative democracy
D. socialistic democracy
E. parliamentary democracy
25. In a representative democracy, if elected representatives fail to perform their job adequately, what will
A. a socialist democracy will take over
B. a federalist republic will take over
C. a collectivist federation will take over
D. they will be voted out of office in the next election
E. they will hold their offices for life
26. To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal
representative democracy has a number of safeguards. Which of the following is not an example of a safeguard
in a ideal representative democracy?
A. a fair court system that is independent from the political system
B. universal adult suffrage
C. an individual’s right to freedom of expression, opinion, and organization
D. a political police force and armed services
E. regular elections
27. _______ is a form of totalitarianism that advocates achieving socialism through totalitarian dictatorship.
A. Tribal totalitarianism
B. Democratic totalitarianism
C. Communist totalitarianism
D. Collective totalitarianism
E. Theocratic totalitarianism
28. There are four major forms of totalitarianism in the world today. These are:
A. collective, Marxist, right-wing, and ancestral
B. theocratic, democratic, tribal, and communist
C. communist, theocratic, tribal, and right-wing
D. ancestral, Marxist, left-wing, and compiled
E. tribal, Maoist, right-wing, and dictatorial
29. All of the following are forms of totalitarianism except:
30. A form of totalitarianism in which political power is monopolized by a party, group, or individual that
governs according to religious principles is called __________.
A. right-wing totalitarianism
B. theocratic totalitarianism
C. ancestral totalitarianism
D. tribal totalitarianism
E. fundamental totalitarianism
31. In which region of the world is tribal totalitarianism found?
C. South America
E. Central America
32. Right-wing __________ generally permits individual economic freedom, but restricts individual political
freedom on the grounds that it would lead to a rise of communism.
33. Which of the following are the three broad types of economic systems?
A. market economy, combined economy, production economy
B. market economy, post-industrial economy, industrial economy
C. combined economy, separate economy, mixed economy
D. ordinance economy, production economy, political economy
E. market economy, command economy, mixed economy
34. All of the following are types of economic systems except:
A. market economy
B. command economy
C. mixed economy
D. progressive economy
E. none of the answers are an example of a type of economic system
35. In a pure __________ economy the good and services that a country products, and the quantity in which
they are produced, is not planned by anyone. Rather it is determined by the interaction of supply and demand
and signalled to producers through the price system.
36. 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 planned by:
A. private industry
B. local trade associations
C. individual entrepreneurs
D. the government
E. citizen committees
37. A _______ is an economic system in which the goods and services produced, the quantity in which they are
produced, and the prices at which they are sold are all planned by the government.
A. civic economy
B. administrative economy
C. command economy
D. market economy
E. post-industrial economy
38. In a pure __________ economy all businesses are state owned so the government can direct them to make
investments that are in the best interests of the nation as a whole, rather than in the interest of private
39. In a __________ economy, certain sectors of the economy are left to private ownership and free market
mechanisms, while in other sectors there is significant state ownership and government planning.
40. What kind of economies were once very common throughout much of the world, although they are
becoming less so?
41. Canada could be described as having elements of both a __________ economy and a ___________
A. command; mixed
B. mixed; regional
C. market; regional
D. command; regional
E. market; mixed
42. The __________ is influenced by the prevailing political system.
A. corporate system
B. economic system
C. technological system
D. market system
43. The _______________ system evolved in England over hundreds of years and is based on tradition,
precedent, and custom.
C. common law
D. economic law
E. contract law
44. A _______________ law system is based on a very detailed set of laws organized into codes.
45. A law system that is based primarily on religious teachings, refers to a
A. civil law system.
B. theocratic law system.
C. common law system.
D. traditional law system
E. canon law system.
46. Quebec is the only province in Canada to use the _____________ law system.
47. Phillip Garbrose is in the process of writing up a document that states his company will provide consulting
on network applications for the next two weeks, for a specified amount of money. Phillip is in the process of
A. a contract.
B. a contract law.
C. property law.
D. private action suit.
E. a memorandum of understanding
48. The parties to an agreement normally resort to _______________ when one party feels the other has
violated either the letter of the spirit of the agreement.
A. property law
C. third-party mediator
D. contract law
E. the courts
49. The _________________ establishes a uniform set of rules governing certain aspects of the making and
performance of everyday commercial contracts between sellers and buyers.
A. United Nations Convention on Contracts for the International Sale of Goods
B. The foreign practices act
C. State directed economy
D. The United Nations Human Development
E. The Canadian Government
50. The __________ of a country refers to the rules that regulate behaviour, along with the processes by which
the laws of a country are enforced and through which redress for grievances is obtained.
A. political system
B. administrative system
C. economic structure
D. legal system
E. ethical system
51. The bundle of legal rights over the use to which a resource is put; and over the use made of any income that
may be derived form that resource are called __________ rights.
52. The violation of _______________ can be violated in two ways—through private action and through public
D. property rights
E. individual rights
53. Which of the following describes the concept of intellectual property?
A. Exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and dispose of
their work as they see fit.
B. Property, such as computer software, screenplays, musical scores, or chemical formulas for new drugs, that is
the product of intellectual activity.
C. Designs and names, often officially registered, by which merchants or manufacturers designate and
differentiate their products.
D. Document giving the inventor of a new product or process exclusive rights to the manufacturer, use, or sales
of that invention.
E. Property that can be digitized and copied
54. Suppose you invent a new product and want to obtain the exclusive rights to manufacture the product. To
protect yourself, you should apply for a __________ on the product.
55. Suppose 3M corporation develops a new type of adhesive tape. 3M can protect its invention through what
kind of protection?
56. What grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that
57. __________ are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to
publish and dispose of their work as they see fit.
58. A composer is able to protect an original musical score from being copied and sold by someone else through
59. __________ are designs and names, often officially registered, by which merchants or manufacturers
designate and differentiate their products.
60. As a result of __________ protection, the Nike “swoosh” logo is protected from being used by any other
61. Patents, copyrights, and trademarks are examples of __________ property laws.
62. “Windows” is a computer operating system that is an exclusive __________ of the Microsoft corporation.
63. _______________ to violate property rights refers to theft, piracy, and blackmail.
B. Public action
D. Private action
E. Public Patents
64. When public officials such as politicians and government bureaucrats, extort income or resources from
property holders, this can be described as a(n)
B. public action.
D. private action.
65. In the United States, the Foreign Corrupt Practices Act was passed during the _______ following revelations
that U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative
66. In Canada, the Bill S-21 was passed during the _______ following a meeting with G7 leaders that endorsed
the OECDs call to end bribery of foreign officials.
67. Bill S-21 does what?
A. Increases GNP
B. Protects copyrights
C. Protects trademarks
D. Makes bribery a crime
E. Increases PPP
68. An important international agreement signed by 96 countries to protect intellectual property, was called the
A. Paris Convention for the Protection of Industrial Property.
B. Paris Convention on Human Development.
C. Paris Convention for the Protection of Intellectual Property.
D. Paris Convention for the Development of Intellectual Innovation.
E. Paris Convention for Related Aspects of Intellectual Rights
69. The __________ industry, according to our textbook, suffers the most from lax enforcement of intellectual
B. consumer electronics
C. computer software
D. prescription drug
70. Generally speaking, international laws about intellectual property rights are _______.
A. Not part of TRIPS
B. Not affected by the lobbying of specific firms
C. Roughly the same as they were two decades ago
D. Being weakened
E. Being strengthened
71. _______________ set certain safety standards to which a product must adhere.
A. Turnout safety laws
B. Product liability laws
C. Product safety laws
D. Contract liability laws
E. Civil laws
72. __________ liability involves holding a firm and its officers responsible when a product causes injury,
death, or damage.
73. _______________ allows for a more direct comparison of living standards in different countries.
74. GNP is increasingly being replaced by ______.
B. Atlas conversion
D. Atlas methodology