Deck 14: Capitalism and the Economy

Question 1

George lives in fifteenth-century England.He is bound to the land but does not own it.He works the land but must give a portion of his harvest to the landowner.In return,he gets protection from roaming bandits and thieves.George is a:

A) serf.
B) slave.
C) lord.
D) vassal.

Answer 1

A

Question 2

How did the enclosure movement change the economy in the early Tudor period in England?

A) It caused the price of land to rise.
B) It undermined the lords' source of authority.
C) It created a large, new pool of urban labor.
D) It made agriculture untenable in England.

Answer 2

C

Question 3

Adam Smith argues that money is inherently social because:

A) it requires an employment relationship between an employer and employee.
B) it requires complex social and governmental institutions to ensure that markets work properly.
C) any and all economic exchange requires two partners.
D) economic activity involves cooperation and even collusion among many participants.

Answer 3

C

Question 4

The dominant economic system before the agricultural revolution was:

A) the enclosure movement.
B) the feudal system.
C) the post-Industrial Revolution.
D) the service sector.

Question 5

According to the textbook,in a capitalist economic system,the price and distribution of goods and services are determined by what?

A) number of workers
B) monetization
C) location
D) competition

Question 6

You are the lord of an estate.During the enclosure movement in Tudor England,what did you likely do with some of your common land?

A) built a factory on it
B) kicked off the commoners who had used the land for grazing
C) divided it up among more serfs
D) started to grow crops on it

Question 7

Monetization refers to:

A) an economic system in which property and goods are owned privately.
B) an economic system characterized by the presence of royalty.
C) the establishment of a widely accepted currency for exchange.
D) a system of payment based on products produced, not hours worked.

Question 8

What effect did the agricultural revolution in Europe have on the transition to capitalism?

A) It slowed down the development of capitalism.
B) It helped capitalism develop.
C) It occurred thousands of years before capitalism and was unrelated.
D) It kept the capitalist economies of some countries underdeveloped.

Question 9

During the agricultural revolution,the enclosure movement caused many former serfs to move to cities in search of work and led to the rise of:

A) wage labor.
B) apartment rentals.
C) the police force.
D) wars between England and India.

Question 10

On a feudal estate,Bob is the lord,Jim is the vassal,Tom is the serf,and Frank is the knight.Who receives the profits from the agricultural activity on the land?

A) Jim
B) Bob
C) Frank
D) Tom

Question 11

Adam Smith,the father of liberal economics,determined that groups of individuals pursuing their own self-interest manage to stay intact and not fall into the chaos of civil strife because:

A) individuals are focused on their own issues and do not realize the chaos around them.
B) individual self-interest in an environment of others acting similarly will lead to a situation of competition.
C) individuals will strive to make their contribution stand out.
D) individuals compete with people they know but feel strangers are no threat in the business world.

Question 12

What happened to many serfs as a result of the enclosure movement?

A) Their daily lives were more closely monitored.
B) They were evicted.
C) They had more land to use for grazing and planting.
D) They had to pay more rent.

Question 13

The rise of large-scale production,the influx of peasants to urban areas to find work,and the rise of a system of wage labor caused the ____________ system to become obsolete in favor of a new system of legal currency.

A) barter
B) neighborhood
C) exchange
D) trade

Question 14

Adam Smith demonstrated with his pin factory example that:

A) capitalism constantly destroys old technologies in favor of new ones.
B) factory production cannot create products as desirable as craft production.
C) factory production leads to social problems, including alienation and poverty.
D) by dividing labor, factory production increases output by making it more efficient.

Question 15

The agricultural revolution was spurred on by new innovations such as:

A) the steam engine.
B) factories.
C) the lightbulb.
D) crop rotation.

Question 16

At the end of the eighteenth century and the beginning of the nineteenth century,a massive transition was propelled by the development of new technologies,including:

A) the cotton gin and distiller.
B) the power loom and steam engine.
C) the telephone and telegraph.
D) motorcars and tractors.

Question 17

Under feudalism,what was one of the major resources exchanged among lords,vassals,and serfs?

A) money
B) authority
C) land
D) protection

Question 18

Jenny lives in a society in which there is a strong norm against mixing business with pleasure.Work and leisure activities are physically separate,occurring at different times,on different days,at different places,and often with different people.Jenny lives in a ____________ society.

A) feudal
B) modern capitalist
C) premodern agricultural
D) communal

Question 19

According to Adam Smith,the most efficient way to produce something is:

A) with the use of skilled craftsmen who control the entire production process.
B) with a mechanical assembly line that carries the product to the workers.
C) through the use of interchangeable parts.
D) through a division of labor that breaks production into its constituent parts.

Question 20

Serfs were the lowest class in the feudal system and were bound to the land they worked,yet they were not slaves.They were different from slaves because they:

A) could own property.
B) could be sold.
C) did not have to give the lord any of their earnings.
D) could be traded to other lords.

Question 21

Attitudes about gender and work became self-confirming myths and enforced women's dependence.The unfair family wage pushed an incentive on women to:

A) rebel against men.
B) marry and stay married.
C) have many children.
D) become witches.

Question 22

Feminist sociologists claim that the family wage is a patriarchal bargain because it implies that:

A) women depend on a man's wage.
B) women aren't smart enough to get a high-paying job.
C) the money men earn is worthless.
D) a family needs to have a male head.

Question 23

A system of payment whereby workers are compensated on the basis of a wage not tied to the quality of the raw materials,accidents,or other exigencies in the production process refers to:

A) payment per unit.
B) piecework.
C) hourly wage.
D) wage labor.

Question 24

Karl has been hired to paint a house blue,but he mixes the color wrong,and it turns out purple instead of blue.Under which wage system(s)would he be responsible for paying for new paint?

A) piecework and payment in kind
B) wage labor
C) payment in kind
D) piecework

Question 25

In contrast to Simmel,Karl Marx believed that friendship under capitalism is not possible because:

A) all relationships become market relationships.
B) everyone becomes too lazy.
C) people care too much about others.
D) people forget how to communicate.

Question 26

In addition to attracting new workers,Ford's "family wage":

A) brought more women into the labor force.
B) created the glass ceiling.
C) created gender equality among married couples.
D) reinforced women's economic dependence at home.

Question 27

What is one advantage of piecework payment over in-kind payment?

A) The payment is not personal.
B) The wage is not tied to the quality of the item produced.
C) The worker can do whatever he wants with the cash.
D) The worker is paid in items that he needs for survival.

Question 28

Henry Ford was heralded for his generosity and genius when he created a new type of wage system whereby male workers were paid sufficient wages to support a dependent wife and children.What term refers to this type of payment?

A) salary
B) honorarium
C) hourly wage
D) family wage

Question 29

Your grade level and amount of experience determine your:

A) number of sick days.
B) civil service salary.
C) health insurance rates.
D) high-level military officer pay.

Question 30

Marx described workers as being alienated from:

A) the process of production.
B) other people.
C) themselves.
D) all of the above.

Question 31

The money that working women earned was not expected to provide for a family.According to the textbook,what group did this assumption harm the most?

A) widows
B) children
C) black women
D) prostitutes

Question 32

Barbara Risman equated gender inequality,in the form of marriage,to:

A) necessities of American society.
B) sexism.
C) feminism.
D) racism.

Question 33

In terms of the evolution of payment and exchange,wage labor is more developed than piecework payment because under wage labor:

A) the employer assumes responsibility for the quality of the raw materials, the technology, and the production process.
B) workers are paid not for a direct service but for the sum total of their services.
C) workers control the pace and conditions of their labor.
D) more personal relationships between worker and employer are created.

Question 34

With regard to the family wage,women:

A) got paid the same as men if they were single.
B) were seen to be working just for "extra money," so they were not paid the same as men.
C) actually made more than men, especially if they were single mothers.
D) had to marry to get a family wage equal to their husbands.

Question 35

If you are a salaried worker and you miss a day of work,how does your salary change?

A) It doesn't change.
B) You have to pay your employer back a set amount.
C) You have to pay a fine.
D) If you don't want to pay a fine, you have to make up the day.

Question 36

Because the monetary system is increasingly depersonalized,Simmel argues that it is now possible to:

A) work for someone you don't like.
B) marry someone from a lower class.
C) have true friendships.
D) do shoddy work.

Question 37

Which theorist claimed that modern capitalism would not have arisen without the Protestant Reformation,which created the necessary social conditions for capitalism by creating theological insecurity and instilling a doctrine of predestination?

A) Karl Marx
B) Georg Simmel
C) Adam Smith
D) Max Weber

Question 38

The good thing about a salary,according to Simmel,is that:

A) you are always paid higher than a wage earner.
B) it is the same as piecework payment: so one can barter to get a higher wage.
C) workers still get paid, even if the electricity goes out for the day and no work gets done.
D) it lasts long after a person has retired.

Question 39

An honorarium is similar to a:

A) wage; you get paid for what you produce.
B) gift for something you have agreed to do for someone, like giving a speech.
C) salary; you always know what you can expect in the form of money for your service.
D) scholarship; you are paid before you have performed your service.

Question 40

Georg Simmel saw the development of monetary payment systems as part of a historical evolution leading to:

A) depersonalization of exchange.
B) treating humans like animals.
C) a communistic society.
D) bringing the working class and elites together.

Question 41

According to the textbook,what characterized the "new markets" that are part of globalization?

A) They are primarily financial and not bound by geography; anyone anywhere with the proper equipment can participate.
B) They are concentrated in a few technology centers, and the rest of the world is being left behind.
C) The relative scale of trade flow and capital are higher than ever.
D) International governmental organizations are regulating the global economy in more aggressive ways.

Question 42

Some people consider corporations to be "psychotic" because corporations:

A) routinely kill employees in the name of consensus.
B) maintain long-term relationships even when they are harmful.
C) have multiple personalities.
D) show little regard, remorse, or guilt for harming others.

Question 43

The "typical" American family today is:

A) dual-income.
B) one where the father is the main provider.
C) single-father.
D) matriarchal.

Question 44

____________ trade agreements,such as NAFTA,encourage business at a regional or worldwide level.

A) Unilateral
B) Bilateral
C) Multilateral
D) Polylateral

Question 45

Globalization in the twenty-first century is characterized by:

A) the movement of labor across the world quickly and efficiently to those places it is most needed.
B) the rise of the West, with U.S. and European financial centers dominating global trade.
C) the emergence of new markets, new means of exchange, new players, and new rules that are intensifying worldwide interdependencies.
D) rising equality around the world.

Question 46

The Obama White House tends to differ from the previous one because:

A) it has turned to the traditional African American three-generation household.
B) there is a clear line between work and family life.
C) the previous president liked to eat out rather than in the White House.
D) there are more state dinners now than before.

Question 47

According to sociologists Jerry Jacobs and Kathleen Gerson,because workers want to advance in their careers,many avoid taking full advantage of:

A) health insurance benefits.
B) paternity leave.
C) vacation time.
D) family-friendly office policies.

Question 48

Postfeminist expectations for family and work today are:

A) that more women will become stay-at-home moms.
B) that single moms will raise children without interference from fathers.
C) to combine marriage to an egalitarian man with motherhood and a successful career.
D) that fewer women will have children, hence allowing their careers to blossom.

Question 49

Lawyers who don't provide a tangible object to their clients work in the

A) service sector
B) professional sector
C) idea sector
D) civil sector

Question 50

Corporations are considered people because:

A) people own shares in them.
B) they are entities distinct from their owners.
C) they originated as family-held firms.
D) they can vote.

Question 51

Arlie Hochschild argues that many workers seek refuge from (the)____________ in the ____________.

A) home; workplace
B) children; workplace
C) family; office
D) workplace; home

Question 52

In the United States,corporations share many of the same rights as individuals,except corporations:

A) can't own property.
B) can't enter into contracts.
C) can't vote.
D) can't be sued.

Question 53

In the early days of the new monetary system,stockholders were more willing to invest in corporations because of ____________,which limits their financial liability to whatever they invested in the company.

A) payment per unit
B) limited liability
C) champagne glass distribution
D) political arbitrage

Question 54

Which term refers to legally recognized persons who share many of the rights of an individual as well as act as legal entities by entering into contracts or owning property?

A) monetization
B) socialism
C) communism
D) corporation

Question 55

Which term describes the economy that revolves around providing intangible services such as restaurant work,health care provision,higher education,legal advice,computer tech support,and massage?

A) artisans for hire
B) vocational services
C) service sector
D) civil service

Question 56

Which term refers to the formalized rights,duties,and responsibilities of a person?

A) patriarch
B) juristic person
C) corporation
D) government institution

Question 57

Which term refers to the end result of negotiations among multiple players,enforcing rights,imposing sanctions,or encouraging business at a regional or worldwide level?

A) new means of exchange
B) new players
C) new rules
D) new markets

Question 58

What percentage of working mothers with children age 17 and under say that full-time work is the ideal situation for them?

A) 5 percent
B) 21 percent
C) 75 percent
D) 90 percent

Question 59

FBI consultant Robert Hare claimed that in the pursuit of profits for shareholders,corporations exhibit many of the same traits as:

A) psychopaths.
B) philanthropists.
C) narcissists.
D) hedonists.

Question 60

The global distribution of wealth is referred to as a "champagne glass distribution" because:

A) in the global economy, the best workers, products, and innovations bubble to the top.
B) only a few people are able to afford the expensive luxury items that are popular in the global economy.
C) the top 5 percent of global adults own more than one-third of the world's wealth.
D) the economy is fragile and could shatter at any time.

Question 61

A corporate strategy to reduce production cost is to lower the cost of labor.One publicly unfavorable way is to move all or part of the company's operations overseas and use third world labor to minimize cost.This is referred to as:

A) sweatshop labor.
B) offshoring.
C) migrant labor.
D) developing.

Question 62

Describe the evolution to capitalism starting with feudalism through the Industrial Revolution.Which changes in social and economic arrangements (i.e.,the enclosure movement,monetization,and development of the corporation)were important,and why did they matter?

Question 63

Offshoring occurs when firms:

A) contract some of their work out to independent foreign companies.
B) move all or part of their operations abroad to developing nations.
C) actively scan foreign markets for new places to sell goods and services.
D) transfer high-level executives abroad to be closer to production.

Question 64

Most economists,policy analysts,and well-informed Americans say that the single policy that caused the credit bubble and bust of the 2000s was the repeal of the:

A) Right to Organize Amendment.
B) First Amendment.
C) Banking Act of 1933.
D) Futures Modernization Act of 2000.

Question 65

There are two producers of wagon wheels that together are the exclusive providers to a large community.The executives of these companies meet to set minimum prices and production levels,thereby ensuring that they each will make a higher profit than they would in a free market.This is an example of a(n):

A) monopoly.
B) oligopoly.
C) autocracy.
D) dictatorship.

Question 66

Discuss the theoretical perspectives of the transition to capitalism of Adam Smith,Georg Simmel,Karl Marx,and Max Weber.How are they similar? How are they different? Which do you believe provides the most useful framework for understanding capitalism,and why?

Question 67

One common strategy for attracting the most buyers,which can be accomplished through several tactics,is:

A) lowering production cost.
B) flooding the market.
C) making charity contributions.
D) supporting labor unions.

Question 68

Discuss the changes in family roles and what the workplace has or has not done to keep up with these changes.Include Clinton's Family and Medical Leave Act.Does the U.S.government do enough to help families balance work and family responsibilities?

Question 69

According to Hochschild,Jacobs,and Gerson,why don't workers take advantage of family-friendly policies?

Question 70

Karl Marx felt that workers in a capitalist society were alienated in four ways.List these four ways and give examples of each.

Question 71

According to the textbook,what is the major reason unions are on the decline in the United States today?

A) It is felt that unions increase productivity.
B) The government does a better job at collective bargaining for workers.
C) People don't trust unions, saying they are corrupt and outdated.
D) The Freedom of Association Act was repealed in 1949.

Question 72

How would you describe recent relations between employers and unions?

A) Employers embrace unions.
B) Employers tolerate unions.
C) Employers actively try to undermine unions.
D) Employers have eliminated unions.

Question 73

Explain Henry Ford's family wage.How did economists and politicians view women's wages in Ford's time? What are the implications of the family wage for gender equality?

Question 74

Some critics claim the Carlyle Group uses insider political knowledge,or ____________,to dominate heavily regulated markets.

A) government monopoly
B) political arbitrage
C) corporate oligopoly
D) political intrusion

Question 75

At one time,insurance was:

A) available for everyone, paid for by the government.
B) available for children but not for adults.
C) not available for illegal immigrants but available for people born in the United States.
D) illegal; it was considered gambling.

Question 76

A union allows workers to join together to promote their:

A) organizing.
B) negotiations.
C) arbitrage.
D) collective interests.

Question 77

The Bell Telephone Company,which for decades was the only provider of telephone service in the United States,was a(n):

A) oligopoly.
B) autocracy.
C) market organization.
D) monopoly.

Question 78

An increasing number of workers are working from home today.This blurs the line between work and family.Compare how the blurred lines between family and work are similar (or dissimilar)to an economy dominated by small-scale artisan labor/subsistence farming.

Question 79

A person who has lost an overarching sense of right and wrong in pursuit of higher earnings can be said to have:

A) become a juristic person.
B) embraced the spirit of socialism.
C) parceled out his soul.
D) become a member of the working class.

Question 80

Levi Strauss has a corporate code of conduct regarding labor that says:

A) the company will not negotiate with labor unions.
B) the company will not outsource American jobs.
C) any contractor working with Levi Strauss must conform to good labor practices.
D) any country in which Levi Strauss does business must provide clean housing and water for laborers.