WGU; C200; Global Economics; Chapter 2 questions
with verified answers
_____ are represented by laws, regulations, and rules.
a. Normative institutions
b. Sociocultural institutions
c. Cognitive institutions
d. Formal institutions Ans✓✓✓ d. Formal institutions
_____ 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.
a. De minimis
b. Nolo contendere
c. Force majeure
d. Travaux préparatoires Ans✓✓✓ c. Force majeure
A copyright is an example of an intellectual property.
a. true
b. false Ans✓✓✓ true
A fundamental aspect of _____ is that it effectively conducts global business by
providing an individual the right to freedom of expression and organization.
a. communist totalitarianism
b. right-wing totalitarianism
c. democracy
d. theocracy Ans✓✓✓ c. democracy
,A mixed economy has elements of both a market economy and a command
economy.
a. true
b. false Ans✓✓✓ true
According to the institution-based view, managers and firms make choices
outside institutional constraints.
a. true
b. false Ans✓✓✓ false
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.
a. true
b. false Ans✓✓✓ true
All Western countries practice the absolute laissez-faire philosophy in trade.
a. true
b. false Ans✓✓✓ false
An institutional framework is made up of formal and informal institutions
governing individual and firm behavior.
a. true
b. false Ans✓✓✓ true
, Civil law uses comprehensive statutes and codes as a primary means to form legal
judgments.
a. true
b. false Ans✓✓✓ true
Cognitive pillar is the coercive power of governments.
a. true
b. false Ans✓✓✓ false
Contracts in civil law countries tend to be long and detailed compared to
contracts in common law countries.
a. true
b. false Ans✓✓✓ false
Disabling formal institutes does not affect transaction costs.
a. true
b. false Ans✓✓✓ false
Economic systems are examples of formal institutions.
a. true
b. false Ans✓✓✓ true
Firms operating in democracies never confront political risk.
a. true
b. false Ans✓✓✓ false
with verified answers
_____ are represented by laws, regulations, and rules.
a. Normative institutions
b. Sociocultural institutions
c. Cognitive institutions
d. Formal institutions Ans✓✓✓ d. Formal institutions
_____ 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.
a. De minimis
b. Nolo contendere
c. Force majeure
d. Travaux préparatoires Ans✓✓✓ c. Force majeure
A copyright is an example of an intellectual property.
a. true
b. false Ans✓✓✓ true
A fundamental aspect of _____ is that it effectively conducts global business by
providing an individual the right to freedom of expression and organization.
a. communist totalitarianism
b. right-wing totalitarianism
c. democracy
d. theocracy Ans✓✓✓ c. democracy
,A mixed economy has elements of both a market economy and a command
economy.
a. true
b. false Ans✓✓✓ true
According to the institution-based view, managers and firms make choices
outside institutional constraints.
a. true
b. false Ans✓✓✓ false
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.
a. true
b. false Ans✓✓✓ true
All Western countries practice the absolute laissez-faire philosophy in trade.
a. true
b. false Ans✓✓✓ false
An institutional framework is made up of formal and informal institutions
governing individual and firm behavior.
a. true
b. false Ans✓✓✓ true
, Civil law uses comprehensive statutes and codes as a primary means to form legal
judgments.
a. true
b. false Ans✓✓✓ true
Cognitive pillar is the coercive power of governments.
a. true
b. false Ans✓✓✓ false
Contracts in civil law countries tend to be long and detailed compared to
contracts in common law countries.
a. true
b. false Ans✓✓✓ false
Disabling formal institutes does not affect transaction costs.
a. true
b. false Ans✓✓✓ false
Economic systems are examples of formal institutions.
a. true
b. false Ans✓✓✓ true
Firms operating in democracies never confront political risk.
a. true
b. false Ans✓✓✓ false
