AGB 302 Homework 1 exam questions and answers

Interdependent political, economic, and legal systems of a country make up its: - Answer-political economy A political system that prioritizes the needs of the society over individual freedoms is called ________. - Answer-collectivism The ________ believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. - Answer-communists Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle? - Answer-individualism Which of the following statements about individualism is true? - Answer-Individualism advocates for a democratic political system. In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. - Answer-market economy Judges in a(n) ________ have the power to interpret the law so that it applies to the unique circumstances of an individual case. - Answer-common law system The ________ associated with doing business in a country are a function of that country's political, economic, and legal systems. - Answer-benefits, costs, and risks The ________ believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. - Answer-communists Who was the author of The Wealth of Nations in which it is stated that an individual who intends his own gain is led by an invisible hand to promote an end that was not part of his intention? - Answer-Adam Smith GNI per capita can be adjusted by ________ to account for differences in the cost of living. - Answer-purchasing power GNI and PPP data are useful because they provide a ________ of economic development. - Answer-static analysis In a ________, the state owns all means of production. - Answer-planned economy