political economy (final)

Question 1

what are the factors of production?

Answer 1

1. land
2. labor
   3.capital
3. enterprise

Question 2

define political economy

Answer 2

study of how political and economic systems interact

Question 3

define political system

Answer 3

process of how laws are made and how resources are allocated in society

Question 4

how is the political economy considered

Answer 4

through external factors around businesses

Question 5

types of democracies

Answer 5

1. totalitarian
2. democracy

Question 6

define totalitarian

Answer 6

government is the only decision-maker

Question 7

types of totalitarianism

Answer 7

1. communism
2. theocratic
3. tribal
4. socialism

Question 8

define democracy

Answer 8

people have the power to make decisions either directly or by electing representatives to do so

Question 9

what is communism?

Answer 9

all property is owned by the government, aiming for a society without social class

Question 10

example of communist country

Answer 10

china

Question 11

what is socialism?

Answer 11

the government owns and controls the means of production and distribution of goods, aiming for reduced income inequality

Question 12

what is theocratic

Answer 12

laws and policies based on religious beliefs

Question 13

example of theocratic country

Answer 13

saudia arabia

Question 14

what is tribal

Answer 14

when tribal leaders hold power, which can lead to a system where they have complete control

Question 15

what is collectivism?

Answer 15

needs of a society as a whole are more important than individuals

Question 16

what is individualism?

Answer 16

the interest of individuals taken over the interest of the state, individuals have the freedom to pursue their economic and political goals

Question 17

what is the economic system?

Answer 17

governments organize and distribute available resources, goods, and services across a country

Question 18

types of economic systems

Answer 18

1. command economy
2. mixed economy
3. free market

Question 19

what is command economy?

Answer 19

all resources are owned by the government

Question 20

what does the government decide in a command economy?

Answer 20

1. what to produce
2. for whom (domestically or internationally)
3. how much

Question 21

disadvantages of command economy

Answer 21

1. lack of profit
2. low economic growth
3. bureaucracy

Question 22

examples of command economies

Answer 22

1. egypt
2. north korea
   leaning towards command

Question 23

what is a free market?

Answer 23

private ownership of all resources; supply and demand decide what’s produced

Question 24

advantages of free market

Answer 24

1. higher efficiency because businesses are profit-driven
2. the government oversees the functioning of the economy

Question 25

examples of free market

Answer 25

1. usa
2. gulf countries
   leaning towards free market

Question 26

what is legal system?

Answer 26

rules and laws enforced that regulate behaviour

Question 27

what influences the legal system

Answer 27

the political system

Question 28

types of laws

Answer 28

1. common
2. civil
3. theocratic

Question 29

what is common law?

Answer 29

based on traditions and precedents, it’s more flexible.

Question 30

what is civil law?

Answer 30

based on laws organized into codes

Question 31

what is theocratic laws

Answer 31

based on religion, most common is sharia

Question 32

common law vs civil law

Answer 32

common law has a detailed contract, while civil law has a less specific one

Question 33

what law did the UN create

Answer 33

ISG

Question 34

what is the ISG

Answer 34

-a law on contracts
It applies automatically
helps make contracts more fair by setting neutral rules for both parties

Question 35

define property rights

Answer 35

legal rules that give people control over their property

Question 36

what is intellectual property?

Answer 36

an idea

Question 37

how is intellectual property protected?

Answer 37

1. patenty
2. copyright
3. trademark

Question 38

what is the foreign corrupt practices act (FCPA)

Answer 38

it’s illegal to bribe a foreign government official