Deck 14: The Economy

Question 1

Until 1937, the buying power of the American dollar was relatively constant.

Answer 1

True

Question 2

A major benefit of the biotech society is that it will create a more equal global society, narrowing the gap between rich and poor nations.

Answer 2

False

Question 3

Convergence theory suggests that the two economic systems of capitalism and socialism will grow further and further apart, which will lead to international mistrust and trade wars.

Answer 3

False

Question 4

The passing of power from heads of families and clans to the ruling elite took place as agricultural societies replaced horticultural and pastoral societies.

Question 5

Convergence theory occurs when former capitalist nations adopt features of socialism and former socialist nations adopt features of capitalism, while each transforms into the other.

Question 6

The economic system in the United States is an example of pure capitalism.

Question 7

Because the United States uses the gold standard to back its currency, the American dollar is the most valued currency.

Question 8

Currency and deposit receipts represent stored value, meaning that there are goods stored and held in reserve to back up and provide value for it.

Question 9

Although socialism is ideologically in conflict with capitalism, a number of programs operating in the United States could be classified as socialistic.

Question 10

In an industrialized society, there is virtually no difference between mechanical and organic solidarity.

Question 11

In theory, socialists believe that profit is immoral and that capitalists create social inequality and exploit poorly paid workers.

Question 12

Conspicuous consumption has replaced the Protestant ethic in most industrialized nations.

Question 13

Changing trends in the world's largest corporations indicate that the U.S. is losing economic power while China is gaining dominance.

Question 14

The society that engaged in the lowest amount of trading was the hunting and gathering society.

Question 15

The largest source of illegal, or unreported, income in the United States is most likely the cash wages paid to illegal immigrant laborers.

Question 16

Because the American economy is based on state capitalism, manufacturers have a totally free hand in producing and distributing whatever goods and services the market will bear.

Question 17

Inflation means that each unit of currency will purchase a greater amount of goods and services than it previously could purchase.

Question 18

In a pure socialist economy, members of the central committee, supervisors, and factory workers are all employees of the government.

Question 19

A monopoly is a capitalist's worst nightmare.

Question 20

The control of an entire industry by a single company is referred to as a monopoly.

Question 21

The plow was to the agricultural society as the ________ was to the industrial society.

A) microchip
B) assembly line
C) human genome
D) steam engine

Question 22

At one time, the American paper dollar could be exchanged for gold held at Fort Knox. When this was permitted, what quality did paper money possess?

A) The currency was considered fiat money.
B) The currency was backed by land.
C) The currency was subject to severe inflation.
D) The currency had stored value.

Question 23

Who coined the term "postindustrial society" in 1973?

A) David Bell
B) Michael Burawoy
C) Thorstein Veblen
D) Max Weber

Question 24

Hunting and gathering societies that generate very little surplus food and material property are described by sociologists as ________ economies.

A) welfare
B) capitalist
C) subsistence
D) socialist

Question 25

What is the determining factor for inflation to occur?

A) Currency can no longer be exchanged for gold or silver.
B) Value of the currency is based on the stock market.
C) Currency is issued at a higher rate than the growth of the Gross Domestic Product.
D) Prices are raised beyond what most people can afford.

Question 26

What was the earliest medium of exchange?

A) gold standard
B) money
C) land standard
D) barter system

Question 27

At the marketplace, Blossom brings pastries that she bakes to exchange for clothing. David brings chickens to trade for Blossom's pastries. What medium of exchange does this illustrate?

A) deposit receipt
B) barter
C) stored value
D) fiat money

Question 28

Jacob lives in the agricultural period. To purchase a new buggy and farm implements from the general store, gives the owner a note that specifies that a certain quantity of goods be set aside for him in a warehouse. Such an arrangement is an example of ________.

A) the gold standard
B) stored value
C) deposit receipts
D) fiat money

Question 29

In theory, industries can manufacture and sell poisons, bombs, and weapons of any type as long as there are consumers to buy them and they operate within a government that permits ________.

A) welfare capitalism
B) corporate capitalism
C) socialist capitalism
D) laissez-faire capitalism

Question 30

Jack just received $10,000 in e-cash. By doing so, how did he actually receive the funds?

A) They were delivered by messenger in a certified check.
B) His bank received a transfer of funds from another bank.
C) They were sent to his computer.
D) He received cash for his work in the underground economy.

Question 31

What condition had to exist before members of a society could create a permanent or
Semi-permanent place to live?

A) a powerful ruler who was able to control power
B) a form of barter that was used as an economy
C) a strong military that protected all citizens
D) a surplus of food that could be distributed and exchanged

Question 32

The linking of the world's nations by fast communication, transportation, and increased trade has created what sociologists refer to as ________.

A) an open market
B) the global village
C) a new world order
D) the corporate universe

Question 33

Today, most governments issue money that is backed by nothing more than a promise to honor it for all debts public and private. Such currency is called ________.

A) gold standard currency
B) fiat money
C) warehouse cash
D) deposit receipt

Question 34

The means by which people value and exchange goods and services is referred to as ________.

A) the medium of exchange
B) industrialization
C) stored value
D) the division of labor

Question 35

Who suggested the concept of "conspicuous consumption" in 1912?

A) Tamotsu Shibutani
B) Robert Figlio
C) Arthur Shostak
D) Thorstein Veblen

Question 36

What term describes a system that emphasizes hard work, savings, and a concern for salvation?

A) subsistence economy
B) Protestant ethic
C) laissez-faire socialism
D) bureaucratic capitalism

Question 37

The eagerness to show wealth by the purchase and visible ownership of goods is called ________.

A) open economy
B) pure capitalism
C) conspicuous consumption
D) manifest marketing

Question 38

The sociological significance of early development of surplus and trade is that they ________.

A) fostered social inequality
B) established a new world order
C) lowered prices
D) eliminated primitive tribes

Question 39

The "global village" refers to ________.

A) a world without distinction regarding ethnicity or race
B) a world without national boundaries
C) the linking of the world's nations by fast communications, trade, and transportation
D) the elimination of poverty and disease from humanity

Question 40

Inflation in the United States is usually about _________ a year.

A) 2 percent
B) 3 percent
C) 10 percent
D) 15 percent

Question 41

In the capitalist economy, when the government identifies a firm that has monopolized a product or service, it may order the company to ________, that is, sell off some of its businesses.

A) consolidate
B) divest
C) merge
D) declare bankruptcy

Question 42

The author suggests that former capitalist nations could adopt features of socialism, while former socialist nations adopt features of capitalism. This theory is referred to as ________.

A) excess value
B) convergence
C) transformation
D) private ownership

Question 43

What is the primary criticism leveled against capitalism?

A) It produces more products than can be reasonably consumed.
B) It leads to severe social inequalities.
C) It violates the basic economic law of supply and demand.
D) It promotes immorality through conspicuous consumption.

Question 44

At the annual shareholders' meeting, the CEO proposed that the corporation go public and create an additional million shares of stock to raise capital. The shareholders rejected the idea because they did not want to see the value of their own stock drop. This scenario is an example of ________.

A) a stockholder's revolt
B) the quiet revolution
C) the capitalist's dream
D) management by objective

Question 45

What term did Durkheim use to refer to the global division of labor that has led to specific tasks performed by members of society and a lessening of social cohesion?

A) organic solidarity
B) gesellschaft
C) mechanical solidarity
D) gemeinschaft

Question 46

Overlapping memberships of the world's top multinational companies enfold their leaders into a small circle called a(n) ________.

A) global superclass
B) global village
C) international monopoly
D) multinational corporation

Question 47

In the globalization of capitalism, the dominant European nation is ________.

A) Germany
B) Great Britain
C) Italy
D) France

Question 48

In the United States, government interventions that restrict a person's ability to immediately produce and sell a product that he or she has discovered or invented are referred to as ________.

A) market restraints
B) social forces
C) laws of supply and demand
D) patent laws

Question 49

In socialism, who or what determines what will be produced and what it will cost?

A) the level that the market will bear
B) the industrialist who produces the goods
C) the central committee that decides what the country needs
D) the consumer who purchases the goods

Question 50

What is another name for "welfare capitalism"?

A) laissez-faire capitalism
B) state capitalism
C) pure capitalism
D) "hands off" capitalism

Question 51

How would Karl Marx define "profit"?

A) the excess value of a product that is withheld from workers
B) the gross domestic product of a society
C) the price of the goods less the cost to manufacture the goods
D) the total cost of the product to the consumer

Question 52

Frank Buckman sits on the board of directors for seven oil companies and three corporations that manufacture oil rigs and oil-producing machinery. Several of his closest business associates belong to the same boards. Such a scenario is an example of a(n) ________.

A) interlocking directorate
B) global superclass
C) oligopoly
D) stockholders' revolt

Question 53

If a corporation is sued for selling unsafe products and loses the suit and is held liable, who or what is responsible for the debt?

A) the shareholders as joint owners
B) the corporation as a legally defined entity
C) the managers of the corporation
D) the shareholders owning 10 percent or more of the company

Question 54

What term did Durkheim use to refer to the sense of unity that comes from doing similar activities and directly sharing most aspects of life?

A) organic solidarity
B) gesellschaft
C) mechanical solidarity
D) transformation

Question 55

Which industrial giant was responsible for the federal government passing antimonopoly legislation?

A) Bill Gates' control of Microsoft
B) Carnegie's control of the steel market
C) DuPont's manufacture of gunpowder
D) Rockefeller's control of the oil market

Question 56

What theory is based on the idea that the two economic systems - capitalism and socialism - will eventually adopt features of one another until there is a hybrid economic system in all societies?

A) convergence theory
B) transformation theory
C) Marxism
D) welfare capitalism

Question 57

The groups that head the country's top corporations and have access to high-level politicians, use this power to promote legislation favorable to ________.

A) monopolies
B) big business
C) the power elite
D) the ruling class

Question 58

What is significant about Frank Perdue's chicken slogan and Parker Pen's marketing pen slogan?

A) They provide a demonstration of the Thomas theorem.
B) They show that corporations will do anything to make a profit.
C) They provide a demonstration of the Sapir-Whorf hypothesis.
D) They illustrate the cultural barriers of global capitalism.

Question 59

Which of the following social or economic arrangements is described as being the "capitalist's dream"?

A) a totalitarian state
B) an oligopoly
C) a monopoly
D) a free market

Question 60

Which nations serve as the best examples of democratic socialism?

A) the United States and Great Britain
B) Denmark and Sweden
C) China and Russia
D) Taiwan and Japan

Question 61

How did the advent of the steam engine affect domestic and international trade?

Question 62

The largest single source of income that qualifies as being a part of the U.S. underground economy is most likely ________.

A) childcare services and nanny positions
B) domestic service such as housecleaning and laundry
C) drug dealing
D) prostitution

Question 63

What percent of the entire nation's income goes to the richest fifth of Americans?

A) 40 percent
B) 35 percent
C) 50 percent
D) 30 percent

Question 64

Theorists who believe that corporations use profit as their moral guide, with no concern for how opening and closing factories affects workers, are most aligned with which sociological perspective?

A) the conflict perspective
B) functionalism
C) symbolic interactionism
D) structuralism

Question 65

Jose is a Mexican worker referred to as los sin documentos. What does this imply about Jose's work status?

A) Jose is a freelance or contract worker.
B) Jose works without proper identification and is paid in cash.
C) Jose is unemployed and is collecting unemployment insurance.
D) Jose is an unskilled worker.

Question 66

What are some of the implications suggested by the emergence of the biotech society?

Question 67

What is a major concern expressed by employees and managers as it pertains to telecommuting?

A) Corporate profits usually decrease.
B) Quality of the product or service produced declines.
C) Lack of camaraderie and communication difficulties.
D) Workers become unmotivated and lazy.

Question 68

What are the three mediums of exchange that are replacing paper money in the postindustrial society?

Question 69

What are the characteristics of the "typical" woman who is most likely to work for wages?

A) married, African American
B) single, white
C) married, white
D) single, African American

Question 70

What are the three essential features of capitalism?

Question 71

How did the medium of exchange shift in the United States in 1937, and how did it affect purchasing power?

Question 72

The society with the most leisure time spread rather consistently throughout the year is the ________ society.

A) postindustrial
B) industrial
C) pastoral
D) hunting and gathering

Question 73

What is e-cash?

Question 74

In the workplace, which attributes do men have a tendency to emphasize as part of their motive and style?

A) collaboration; persuasion; helping
B) individualism; persuasion; toughness
C) individualism; power; competition
D) creativity; teamwork; perfection

Question 75

What is the most egalitarian of all forms of society?

Question 76

Sociologists use the term "________" to refer to the fundamental changes in society that occur as a result of vast numbers of women entering the workforce.

A) underground economy
B) quiet revolution
C) interlocking directorate
D) feminist revolt

Question 77

How did World War I affect the German economy?

Question 78

Economic activities, illegal or legal, that people do not report to the government are sometimes referred to as the ________ economy.

A) transformation
B) welfare
C) underground
D) organic

Question 79

What is the difference between fiat money in the industrial society and money in the agricultural society?

Question 80

In which of the following nations do workers have the most leisure time, averaging a 35-hour work week?

A) United States
B) Russia
C) Japan
D) Germany