Political & Economic Systems Quiz

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Questions and Answers

What best describes a centrally planned economy?

All economic resources are owned by individual citizens.

Economic decisions are made by private enterprises.

The government makes all decisions regarding production and distribution. (correct)

An economy with minimal government intervention.

Which political ideology is characterized by total control over citizens' lives?

Anarchism

Liberalism

Totalitarianism (correct)

Pluralism

What is a primary characteristic of a mixed economy?

An equal split of resources between government and private entities. (correct)

Focus solely on industrial production.

Complete private ownership of resources.

Total government control of the economy.

What economic values do individualist or collectivist systems reflect?

They reflect the nation’s culture. Signup and view all the answers

What can lead to economic recessions or depressions?

Over-investment resulting in demand drops. Signup and view all the answers

What is NOT a feature of totalitarian political systems?

Political pluralism. Signup and view all the answers

What is a goal of the government in a mixed economy?

To ensure universal access to basic needs. Signup and view all the answers

Which of the following is characteristic of pluralism as a political ideology?

Multiple competing interests and groups. Signup and view all the answers

What is a primary disadvantage of a mixed economy?

Excessive bureaucracy and inefficiency due to regulation Signup and view all the answers

What does demand refer to in economic terms?

The quantity of a good or service that buyers are willing to purchase at a specific price Signup and view all the answers

What role does the government play in a mixed economy?

It intervenes to ensure fair competition and protect property rights Signup and view all the answers

What is one advantage of a market economy?

Innovation driven by competition and profit motives Signup and view all the answers

How can high taxes impact a mixed economy?

They discourage investment and reduce disposable income Signup and view all the answers

In a market economy, who primarily owns the economic resources?

Privately individuals and businesses Signup and view all the answers

What economic cycles can market economies be susceptible to?

Boom and bust cycles leading to recessions Signup and view all the answers

How do legal systems relate to political systems?

They are largely interdependent and influence each other Signup and view all the answers

What is the main belief of anarchism regarding government?

Government is harmful and unnecessary. Signup and view all the answers

What does political economy study?

The management of a country’s affairs using various systems. Signup and view all the answers

Which of the following political systems reflects pluralism?

Constitutional monarchies. Signup and view all the answers

What is a characteristic of totalitarianism?

It governs multiple aspects of life. Signup and view all the answers

What does the concept of pluralism assume about societal diversity?

Diversity is beneficial to society. Signup and view all the answers

Which of the following best reflects the origins of the term 'political economy'?

It is derived from Greek roots meaning 'city' and 'manager'. Signup and view all the answers

In what context did anarchist thought primarily develop?

Mainly in the early 20th century. Signup and view all the answers

What feature is NOT characteristic of a political system?

Processes directing economic activities. Signup and view all the answers

What is the primary focus of Corporate Social Responsibility (CSR)?

Balancing commitments to various stakeholders Signup and view all the answers

What is included in the three layers of CSR activities?

Traditional philanthropy, risk management, and strategic CSR Signup and view all the answers

How does cultural relativism view ethical behavior in a business context?

Behavior acceptable in one culture may be viewed as unethical in another Signup and view all the answers

Which of the following best describes ethical behavior in business?

Actions aligned with personal guidelines for good conduct Signup and view all the answers

What is strategic CSR focused on?

Integrating social responsibility into core operations Signup and view all the answers

Which of the following is NOT an example of traditional philanthropy in CSR?

Developing a code of conduct for ethical behavior Signup and view all the answers

What is one benefit of embracing cultural relativism for businesses?

Improved product acceptance and customer satisfaction Signup and view all the answers

What ethical dilemma may arise in corporate settings?

Alternatives that depend on personal or cultural perspectives Signup and view all the answers

What does the Righteous Moralist philosophy emphasize for multinationals operating globally?

Following home-country ethical standards worldwide. Signup and view all the answers

According to the Utilitarian view, how should companies assess their actions?

By the consequences that maximize good outcomes. Signup and view all the answers

What type of economic system features ownership of resources mainly by the government?

Centrally Planned Economy. Signup and view all the answers

What is a critical concern for companies operating in foreign countries in relation to laws?

Knowledge of product liability and local compliance requirements. Signup and view all the answers

What does Pluralism advocate in terms of political activities within a nation?

That both public and private groups play important roles. Signup and view all the answers

What is one of the challenges posed by legal systems regarding ethics and social responsibility?

They set clearly defined boundaries but are insufficient for ethical dilemmas. Signup and view all the answers

What primary aspect differentiates a Mixed economy from a Centrally Planned Economy?

Private ownership alongside some government control. Signup and view all the answers

What does the Friedman view consider as a fundamental duty of businesses?

To focus solely on maximizing profits for shareholders. Signup and view all the answers

Study Notes

Political Systems

Political systems are the structures, processes, and activities by which a nation governs itself.
Three main political ideologies are: Anarchism, Totalitarianism, and Pluralism.
Anarchism believes government is harmful and unnecessary.
Totalitarianism attempts to assert total control over individual lives.
Pluralism believes both private and public groups play important roles in political activities.

Economic Systems

A nation's economic system allocates resources and conducts commercial activities.
Three main economic systems are: Centrally Planned, Mixed, and Market.
A centrally planned economy is controlled by the government.
A mixed economy has both private and government ownership.
A market economy is primarily privately owned.

Legal Systems

A nation's legal system is its set of laws and regulations.
A legal system is influenced by the political system of a nation.
Legal systems define boundaries for individual and corporate behavior.
They are inadequate for ethical and social responsibility dilemmas.

Corporate social responsibility (CSR) is a business practice balancing commitments to investors, customers, and communities.
Friedman view: a company's sole responsibility is to maximize profits.
Righteous moralist view: a company should follow its home country's ethical standards globally.
Utilitarian view: a company should act to maximize good outcomes and minimize bad outcomes.
Cultural relativism recognizes that acceptable behavior varies between cultures.
Ethical behavior aligns with guidelines for good conduct and morality.

Business Ethics

Moral principles and values guide ethical behavior in business.
Three layers of CSR activity:
- Traditional philanthropy
- Risk management
- Strategic CSR
CSR can build competitive advantage by integrating social responsibility into core operations.

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Description

Test your knowledge on the various political and economic systems that govern nations. This quiz covers important ideologies, structures of governance, and types of economies. Challenge yourself to understand how these systems affect citizens and their daily lives.