Question 1

The normative pillar supports informal institutions.

Accepted Answer

A) True 
 B)False

Question 2

Outline the differences between democracy and totalitarianism.

Accepted Answer

Democracy is a political system in which...

Question 3

_____ are legal rights awarded by government authorities to inventors of new products.

Accepted Answer

A)   Copyrights 
B)   Patents 
C)   Trade secrets 
D)   Trade marksE) A) and B)
F) A) and C)

Question 4

A mixed economy has elements of both a market economy and a command economy.

Accepted Answer

A) True 
 B)False

Question 5

Adopting the Paris Convention is required in order to become a signatory country to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Accepted Answer

A) True 
 B)False

Question 6

Firms operating in democracies never confront political risk.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would be considered an example of formal institutions?

Accepted Answer

A)   Laws 
B)   Norms 
C)   Cultures 
D)   EthicsE) A) and D)
F) A) and B)

Question 8

_____ refers to a legal system based on religious teachings.

Accepted Answer

A)   Common law 
B)   Theocratic law 
C)   Civil law 
D)   Right-wing totalitarian lawE) C) and D)
F) A) and B) B

Question 9

_____ are represented by laws,regulations,and rules.

Accepted Answer

A)   Normative institutions 
B)   Sociocultural institutions 
C)   Cognitive institutions 
D)   Formal institutionsE) None of the above
F) B) and D)

Question 10

_____ is a long-standing legal doctrine that excuses firms from living up to the terms of a deal in the event of natural disasters or other calamities.

Accepted Answer

A)   De minimis 
B)   Nolo contendere 
C)   Force majeure 
D)   Travaux préparatoiresE) B) and C)
F) All of the above C

Question 11

In private ownership,liquidation of a firm is forced by competition.

Accepted Answer

A) True 
 B)False

Question 12

In which of the following examples can the role of the cognitive pillar be identified?

Accepted Answer

A)   A firm being exposed after one of its employees turned whistleblower 
B)   A firm being punished for corporate espionage by the courts 
C)   A firm not being able to sell a certain product in a country due to the prevalent cultural beliefs 
D)   A firm outsourcing its jobsE) None of the above
F) A) and B)

Question 13

Which of the following would be considered an example of intellectual property rights?

Accepted Answer

A)   Rights associated with ownership of vehicles 
B)   Rights associated with ownership of trademarks 
C)   Rights associated with ownership of buildings 
D)   Rights associated with ownership of business contractsE) None of the above
F) A) and D)

Question 14

What are the two core propositions of the institution-based view?

Accepted Answer

The first core proposition of the institution-based view is that managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework.The second proposition is that formal and informal institutions combine to govern firm behavior,in situations where formal constraints are unclear or fail,informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms.

Question 15

Disabling formal institutes does not affect transaction costs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe?

Accepted Answer

A)   That rich countries have a smarter and harder-working population 
B)   That rich countries tend to be endowed with natural resources 
C)   That rich countries tend to have better market-supporting institutions 
D)   That rich countries generally tend to have a democratic style of governmentE) None of the above
F) A) and D)

Question 17

Which of the following is true of private ownership?

Accepted Answer

A)   Firms are established by entrepreneurs, owners, and investors. 
B)   Management appointments are made by government officials and bureaucrats who may also use non-economic criteria. 
C)   Firm's objective would be to find a "fair" deal for all stakeholders. 
D)   Firms deemed "too big to fail" may be supported by taxpayer dollars indefinitely.E) C) and D)
F) A) and B)

Question 18

Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.

Accepted Answer

A) True 
 B)False

Question 19

_____ are exclusive legal rights of firms to use specific names,brands,and designs to differentiate their products from others.

Accepted Answer

A)   Patents 
B)   Trademarks 
C)   Copyrights 
D)   Trade secretsE) All of the above
F) A) and B)

Question 20

Patents are exclusive rights of firms to use specific names and brands.

Accepted Answer

A) True 
 B)False

Exam 2: Understanding Formal Institutions: Politics, laws, and Economics

The normative pillar supports informal institutions.

Correct Answer
verified

Outline the differences between democracy and totalitarianism.

Correct Answer
verified
Democracy is a political system in which...
View Answer

_____ are legal rights awarded by government authorities to inventors of new products.

Correct Answer
verified

A mixed economy has elements of both a market economy and a command economy.

Correct Answer
verified

Adopting the Paris Convention is required in order to become a signatory country to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Correct Answer
verified

Firms operating in democracies never confront political risk.

Correct Answer
verified

Which of the following would be considered an example of formal institutions?

Correct Answer
verified

_____ refers to a legal system based on religious teachings.

Correct Answer
verified
B

_____ are represented by laws,regulations,and rules.

Correct Answer
verified

_____ is a long-standing legal doctrine that excuses firms from living up to the terms of a deal in the event of natural disasters or other calamities.

Correct Answer
verified
C

In private ownership,liquidation of a firm is forced by competition.

Correct Answer
verified

In which of the following examples can the role of the cognitive pillar be identified?

Correct Answer
verified

Which of the following would be considered an example of intellectual property rights?

Correct Answer
verified

What are the two core propositions of the institution-based view?

Disabling formal institutes does not affect transaction costs.

Correct Answer
verified

Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe?

Correct Answer
verified

Which of the following is true of private ownership?

Correct Answer
verified

Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.

Correct Answer
verified

_____ are exclusive legal rights of firms to use specific names,brands,and designs to differentiate their products from others.

Correct Answer
verified

Patents are exclusive rights of firms to use specific names and brands.

Correct Answer
verified

Exam 2: Understanding Formal Institutions: Politics, laws, and Economics

The normative pillar supports informal institutions.

Correct AnswerverifiedShow Answer

Outline the differences between democracy and totalitarianism.

Correct AnswerverifiedDemocracy is a political system in which...View AnswerShow Answer

_____ are legal rights awarded by government authorities to inventors of new products.

Correct AnswerverifiedShow Answer

A mixed economy has elements of both a market economy and a command economy.

Correct AnswerverifiedShow Answer

Adopting the Paris Convention is required in order to become a signatory country to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Correct AnswerverifiedShow Answer

Firms operating in democracies never confront political risk.

Correct AnswerverifiedShow Answer

Which of the following would be considered an example of formal institutions?

Correct AnswerverifiedShow Answer

_____ refers to a legal system based on religious teachings.

Correct AnswerverifiedB

_____ are represented by laws,regulations,and rules.

Correct AnswerverifiedShow Answer

_____ is a long-standing legal doctrine that excuses firms from living up to the terms of a deal in the event of natural disasters or other calamities.

Correct AnswerverifiedC

In private ownership,liquidation of a firm is forced by competition.

Correct AnswerverifiedShow Answer

In which of the following examples can the role of the cognitive pillar be identified?

Correct AnswerverifiedShow Answer

Which of the following would be considered an example of intellectual property rights?

Correct AnswerverifiedShow Answer

What are the two core propositions of the institution-based view?

Disabling formal institutes does not affect transaction costs.

Correct AnswerverifiedShow Answer

Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe?

Correct AnswerverifiedShow Answer

Which of the following is true of private ownership?

Correct AnswerverifiedShow Answer

Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.

Correct AnswerverifiedShow Answer

_____ are exclusive legal rights of firms to use specific names,brands,and designs to differentiate their products from others.

Correct AnswerverifiedShow Answer

Patents are exclusive rights of firms to use specific names and brands.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Democracy is a political system in which...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified