QUESTION In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? A. Command B. Pure market C. Mixed D. Centrally planned E. Laissez-faire ANSWER C In a mixed economy, certain sectors of the […]
QUESTION In mixed economies, governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. Once a government takes into state ownership such troubled firms, they are said to be: A. privatized. B. decentralized. C. liberalized. D. nationalized. E. deregulated. ANSWER D In mixed […]
QUESTION The Boldovian government took Sea Lion Inc., a domestic, private shipbuilding firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the shipbuilding industry were enraged by this decision of the government. As a result, the government had to reduce the tax burden on all other private shipbuilding […]
QUESTION Which of the following is true about the three broad types of economic systems? A. For a pure market economy to function efficiently product supply must be restricted. B. In a command economy, state-owned enterprises have little incentive to control costs and be efficient. C. The sole role of government in a command economy […]
QUESTION Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, whereas the laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the: A. economic system of a country is independent of its legal system. B. legal system […]
QUESTION Which of the following is true about legal systems? A. All countries have the same, uniform legal environment. B. Unlike the economic system of a country, the legal system is independent of the country’s political system. C. The government of a country defines the legal framework within which firms do business. D. The attractiveness […]
QUESTION Which of the following legal systems is most likely to be based on tradition, precedent, and custom? A. Common law B. Civil law C. Autocracy law D. Monarchy law E. Universal law ANSWER A Common law is based on tradition (a country’s legal history), precedent (cases that have come before the courts in […]
QUESTION In the context of common law, which of the following terms refers to the ways in which laws are applied in specific situations? A. Tradition B. Precedent C. Custom D. Interpretation E. Culture ANSWER C Common law is based on tradition, precedent, and custom, where custom refers to the ways in which laws […]
QUESTION Which of the following is a law system based on a detailed set of laws organized into codes? A. Civil B. Theocratic C. Common D. Traditional E. Precedent ANSWER A A civil law system is based on a detailed set of laws organized into codes.
QUESTION A legal system which is based primarily on religious teachings is referred to as a: A. civil law system. B. theocratic law system. C. common law system. D. precedent law system. E. public law system. ANSWER B A legal system that is based primarily on religious teachings is referred to as a theocratic […]
