Competency 2 OA Review PDF

Which of the following is true of a command economy? +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ------------------------- -- | | a. The government...

Which of the following is true of a command economy? +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ------------------------- -- | | a. The government only performs those functions that the private | | sector cannot perform. | | -- ---------------------------------------------------------------- | | ------------------------- -- | +=======================================================================+ | -- ---------------------------------------------------- -- | | **b. It does not allow private entrepreneurship**. | | -- ---------------------------------------------------- -- | +-----------------------------------------------------------------------+ | -- --------------------------------------------------------- -- | | c. It strictly follows the doctrine of *laissez faire*. | | -- --------------------------------------------------------- -- | +-----------------------------------------------------------------------+ | -- --------------------------------------------------- | | d. All factors of production are privately owned. | | -- --------------------------------------------------- | +-----------------------------------------------------------------------+ The main supportive pillars of the informal institutions are \_\_\_\_\_. +-----------------------------------------------------------------------+ | -- ----------------------------------------- -- | | a. regulatory, normative, and cognitive | | -- ----------------------------------------- -- | +=======================================================================+ | -- ----------------------------- -- | | b. cognitive and regulatory | | -- ----------------------------- -- | +-----------------------------------------------------------------------+ | -- -------------------------------- -- | | **c. normative and cognitive** | | -- -------------------------------- -- | +-----------------------------------------------------------------------+ | -- ----------------------------- | | d. regulatory and normative | | -- ----------------------------- | +-----------------------------------------------------------------------+ Which of the following is true of the civil law system? +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | --------- -- | | a. Precedents and traditions from previous judicial decisions sh | | ape it. | | -- ---------------------------------------------------------------- | | --------- -- | +=======================================================================+ | -- ---------------------------------------------------------------- | | --------- -- | | **b. It is the most widely distributed legal system around the w | | orld.** | | -- ---------------------------------------------------------------- | | --------- -- | +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ----------------------------------- -- | | c. It originated in England, and was then spread as the legal sy | | stem for all its former colonies. | | -- ---------------------------------------------------------------- | | ----------------------------------- -- | +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ------------ | | d. It allows judges to interpret the law before making judicial | | decisions. | | -- ---------------------------------------------------------------- | | ------------ | +-----------------------------------------------------------------------+ Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe? +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | --------- -- | | **a. That rich countries have a smarter and harder-working popul | | ation** | | -- ---------------------------------------------------------------- | | --------- -- | +=======================================================================+ | -- ---------------------------------------------------------------- | | ----------- -- | | b. That rich countries tend to have better market-supporting ins | | titutions | | -- ---------------------------------------------------------------- | | ----------- -- | +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ---------------- -- | | c. That rich countries generally tend to have a democratic style | | of government | | -- ---------------------------------------------------------------- | | ---------------- -- | +-----------------------------------------------------------------------+ | +--------------------------------+--------------------------------+ | | | | d. That rich countries tend to | | | | | be endowed with natural | | | | | resources | | | +================================+================================+ | | | | | | | +--------------------------------+--------------------------------+ | | | | \_\_\_\_\_ refers to a legal | | | | | system based on religious | | | | | teachings. | | | | | | | | | | +---------------------------+ | | | | | | -- -------------- -- | | | | | | | a. Civil law | | | | | | | -- -------------- -- | | | | | | | | | | | +===========================+ | | | | | | -- -------------------- | | | | | | | ------------ -- | | | | | | | b. Right-wing totali | | | | | | | tarian law | | | | | | | -- -------------------- | | | | | | | ------------ -- | | | | | | +---------------------------+ | | | | | | -- -------------------- | | | | | | | --- -- | | | | | | | **c. Theocratic law* | | | | | | | * | | | | | | | -- -------------------- | | | | | | | --- -- | | | | | | +---------------------------+ | | | | | | -- --------------- | | | | | | | d. Common law | | | | | | | -- --------------- | | | | | | +---------------------------+ | | | +--------------------------------+--------------------------------+ | +-----------------------------------------------------------------------+ Which of the following is true of private ownership? +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ----------------------------------------------------- -- | | a. Management appointments are made by government officials and | | bureaucrats who may also use non-economic criteria. | | -- ---------------------------------------------------------------- | | ----------------------------------------------------- -- | +=======================================================================+ | -- ---------------------------------------------------------------- | | ---------- -- | | b. Firm's objective would be to find a "fair" deal for all stake | | holders. | | -- ---------------------------------------------------------------- | | ---------- -- | +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ---------------------- -- | | c. Firms deemed "too big to fail" may be supported by taxpayer d | | ollars indefinitely. | | -- ---------------------------------------------------------------- | | ---------------------- -- | +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ------- | | **d. Firms are established by entrepreneurs, owners, and investo | | rs.** | | -- ---------------------------------------------------------------- | | ------- | +-----------------------------------------------------------------------+ Which of the following is a proposition of the institution-based view? +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ---------------------------------------- -- | | a. Dependency on informal constraints will always increase the p | | olitical risks associated with a firm. | | -- ---------------------------------------------------------------- | | ---------------------------------------- -- | +=======================================================================+ | -- ---------------------------------------------------------------- | | --------------------------------------------------------------------- | | ---------------------------- -- | | **b. When formal constraints are unclear, informal constraints w | | ill play a larger role in reducing uncertainty and providing constanc | | y to managers and firms.** | | -- ---------------------------------------------------------------- | | --------------------------------------------------------------------- | | ---------------------------- -- | +-----------------------------------------------------------------------+ | -- ---------------------------------------------------------------- | | ---------- -- | | c. Informal constraints always increases transaction costs for t | | he firm. | | -- ---------------------------------------------------------------- | | ---------- -- | +-----------------------------------------------------------------------+ | -- -------------------------------------------------------------- | | d. Decisions based on bounded rationality should be avoided. | | -- -------------------------------------------------------------- | +-----------------------------------------------------------------------+ The key role of institutions is to \_\_\_\_\_ in business transactions. +-----------------------------------------------------------------------+ | -- -------------------------- -- | | a. reduce resource costs | | -- -------------------------- -- | +=======================================================================+ | -- ------------------------------ -- | | b. increase normative limits | | -- ------------------------------ -- | +-----------------------------------------------------------------------+ | -- --------------------------- -- | | **c. reduce uncertainty** | | -- --------------------------- -- | +-----------------------------------------------------------------------+ | +--------------------------------+--------------------------------+ | | | | d. increase opportunism | | | +================================+================================+ | | | | Which of the following would | | | | | be considered an example of | | | | | informal institutions? | | | | | | | | | | +---------------------------+ | | | | | | -- ---------------- -- | | | | | | | a. Regulations | | | | | | | -- ---------------- -- | | | | | | | | | | | +===========================+ | | | | | | -- ---------- -- | | | | | | | b. Rules | | | | | | | -- ---------- -- | | | | | | +---------------------------+ | | | | | | -- --------------- -- | | | | | | | **c. Ethics** | | | | | | | -- --------------- -- | | | | | | +---------------------------+ | | | | | | +----------+----------+ | | | | | | | | | d. Laws | | | | | | | | | | | | | | | | | | | | Which of | | | | | | | | | | the | | | | | | | | | | followin | | | | | | | | | | g | | | | | | | | | | would be | | | | | | | | | | consider | | | | | | | | | | ed | | | | | | | | | | an | | | | | | | | | | example | | | | | | | | | | of | | | | | | | | | | intellec | | | | | | | | | | tual | | | | | | | | | | property | | | | | | | | | | rights? | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | a. R | | | | | | | | | | ights as | | | | | | | | | | sociated | | | | | | | | | | with ow | | | | | | | | | | nership | | | | | | | | | | of build | | | | | | | | | | ings | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | b. R | | | | | | | | | | ights as | | | | | | | | | | sociated | | | | | | | | | | with ow | | | | | | | | | | nership | | | | | | | | | | of busin | | | | | | | | | | ess cont | | | | | | | | | | racts | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | c. R | | | | | | | | | | ights as | | | | | | | | | | sociated | | | | | | | | | | with ow | | | | | | | | | | nership | | | | | | | | | | of vehic | | | | | | | | | | les | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | d. R | | | | | | | | | | ights as | | | | | | | | | | sociated | | | | | | | | | | with ow | | | | | | | | | | nership | | | | | | | | | | of trade | | | | | | | | | | marks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Which of | | | | | | | | | | the | | | | | | | | | | followin | | | | | | | | | | g | | | | | | | | | | is an | | | | | | | | | | example | | | | | | | | | | of an | | | | | | | | | | intellec | | | | | | | | | | tual | | | | | | | | | | property | | | | | | | | | | ? | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | a. S | | | | | | | | | | cientist | | | | | | | | | | ’s labor | | | | | | | | | | atory | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | b. W | | | | | | | | | | ebsite< | | | | | | | | | | /td> | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | c. O | | | | | | | | | | ffice | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | d | | | | | | | | | |. Home | | | | | | | | | | _____ | | | | | | | | | | are rep | | | | | | | | | | resented | | | | | | | | | | by laws | | | | | | | | | | , regula | | | | | | | | | | tions, a | | | | | | | | | | nd rules | | | | | | | | | |. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | a. C | | | | | | | | | | ognitive | | | | | | | | | | institu | | | | | | | | | | tions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | b. S | | | | | | | | | | ociocult | | | | | | | | | | ural ins | | | | | | | | | | titution | | | | | | | | | | s | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | c. N | | | | | | | | | | ormative | | | | | | | | | | institu | | | | | | | | | | tions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | d. F | | | | | | | | | | ormal in | | | | | | | | | | stitutio | | | | | | | | | | ns | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | S | | | | | | | | | | tate own | | | | | | | | | | ership d | | | | | | | | | | iffers f | | | | | | | | | | rom priv | | | | | | | | | | ate owne | | | | | | | | | | rship in | | | | | | | | | | that in | | | | | | | | | | state o | | | | | | | | | | wnership | | | | | | | | | | _____.< | | | | | | | | | | /p> | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | a. m | | | | | | | | | | anagers’ | | | | | | | | | | compens | | | | | | | | | | ation is | | | | | | | | | | determi | | | | | | | | | | ned by c | | | | | | | | | | ompetiti | | | | | | | | | | ve marke | | | | | | | | | | t forces | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | b. p | | | | | | | | | | rotectin | | | | | | | | | | g jobs a | | | | | | | | | | nd minim | | | | | | | | | | izing so | | | | | | | | | | cial unr | | | | | | | | | | est is t | | | | | | | | | | he objec | | | | | | | | | | tive of | | | | | | | | | | a firm< | | | | | | | | | | /td> | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | c. m | | | | | | | | | | aximizin | | | | | | | | | | g profit | | | | | | | | | | s is the | | | | | | | | | | sole ob | | | | | | | | | | jective | | | | | | | | | | of a fir | | | | | | | | | | m | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | d. m | | | | | | | | | | anagemen | | | | | | | | | | t appoin | | | | | | | | | | tments a | | | | | | | | | | re made | | | | | | | | | | by owner | | | | | | | | | | s and in | | | | | | | | | | vestors | | | | | | | | | | based on | | | | | | | | | | merit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | +----------+----------+ | | | | | | +---------------------------+ | | | +--------------------------------+--------------------------------+ | +-----------------------------------------------------------------------+ The \_\_\_\_\_ refers to the internalized, taken for granted values and beliefs that guide individual and firm behavior. +-----------------------------------------------------------------------+ | -- --------------------- -- | | a. normative pillar | | -- --------------------- -- | +=======================================================================+ | -- ------------------ -- | | b. formal pillar | | -- ------------------ -- | +-----------------------------------------------------------------------+ | -- ---------------------- -- | | c. regulatory pillar | | -- ---------------------- -- | +-----------------------------------------------------------------------+ | -- ------------------------- | | **d. cognitive pillar** | | -- ------------------------- | +-----------------------------------------------------------------------+ \_\_\_\_\_ are exclusive legal rights of authors and publishers to publish and disseminate their work. +-----------------------------------------------------------------------+ | -- --------------- -- | | a. Trademarks | | -- --------------- -- | +=======================================================================+ | -- ------------------ -- | | b. Trade secrets | | -- ------------------ -- | +-----------------------------------------------------------------------+ | -- ------------------- -- | | **c. Copyrights** | | -- ------------------- -- | +-----------------------------------------------------------------------+ | -- ------------ | | d. Patents | | -- ------------ | +-----------------------------------------------------------------------+