QUESTION Author Francis Fukuyama envisioned a world split into different civilizations, each of which has its own value systems and ideology. Indicate whether the statement is true or false. ANSWER FALSE The late influential political scientist Samuel Huntington envisioned a world split into different civilizations, each of which has its own value systems and […]
QUESTION New information and communication technologies have increased a state’s ability to control access to uncensored information. Indicate whether the statement is true or false. ANSWER FALSE New information and communication technologies, including satellite television, fax machines, desktop publishing, and, most important, the Internet, have reduced a state’s ability to control access to uncensored […]
QUESTION In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systems. Indicate whether the statement is true or false. ANSWER TRUE In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries […]
QUESTION Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth. Indicate whether the statement is true or false. ANSWER TRUE Without strong property rights protection, businesses and individuals run the risk that the profits from their innovative efforts will […]
QUESTION Economic freedom does not necessarily equate with political freedom. Indicate whether the statement is true or false. ANSWER TRUE Economic freedom does not necessarily equate with political freedom.
QUESTION If a country’s economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity. Indicate whether the statement is true or false. ANSWER TRUE If a country’s economy is to sustain long-run economic growth, the business environment must […]
QUESTION The shift toward deregulation has been easier for former command economies than for mixed economies. Indicate whether the statement is true or false. ANSWER FALSE In mixed economies, the role of the state was more limited; but here too, in certain sectors the state set prices, owned businesses, limited private enterprise, restricted investment […]
QUESTION Product safety and product liability laws are enforced to protect: A. intellectual property rights. B. companies from their domestic competitors. C. companies from their foreign competitors. D. consumers. E. product inventors. ANSWER D Product safety laws set certain safety standards to which a product must adhere. Product liability involves holding a firm and […]
QUESTION Which of the following type of laws hold a firm and its officers responsible when a product causes injury, death, or damage? A. Product equity B. Product failure C. Product liability D. Product parity E. Product testing ANSWER C Product liability involves holding a firm and its officers responsible when a product causes […]
QUESTION Strong enforcement of intellectual property laws: A. reduces the piracy (theft) of intellectual property. B. reduces the attractiveness of a country as a market or investment site. C. reduces the investments made by companies on basic research. D. limits creativity and innovation among people. E. prohibits a company from having a monopoly over its […]
