Deck 13: Problems in Politics and the Global Economy

Question 1

The four features of ideal capitalism are private ownership of production, pursuit of individual profit, limited government intervention, and competition.

Answer 1

True

Question 2

No economy is purely capitalist or purely socialist.

Answer 2

True

Question 3

Governments by definition have legal and political authority.

Answer 3

True

Question 4

A mixed economy combines elements of both capitalism and socialism.

Question 5

Most shareholders in transnational corporations have control over where plants are located, how much employees are paid, and how the environment is protected.

Question 6

A person may sit on the board of directors of two corporations simultaneously, even if the corporations are in direct competition with each other.

Question 7

Political action committees (PACs) are grassroots organizations that provide support for local politicians based on specific community issues.

Question 8

Most experts believe the United States will always have an active military-industrial complex because of its emphasis on militarism-a societal focus on military ideals and an aggressive preparedness for war.

Question 9

Politics is the social institution through which power is acquired and exercised by certain individuals or groups.

Question 10

According to the text, the three major economic systems present in modern societies are capitalism, communism, and mixed economies.

Question 11

Which of the following best defines politics?

A) the social institution through which power is acquired and exercised by certain individuals or groups
B) the social institution that ensures that a society will be maintained through its production, distribution, and consumption of goods and services
C) the independent workings and interests of political and economic systems
D) the collection of people and organizations who serve as a watchdog to the American government

Question 12

Which of the following best defines economy?

A) the social institution through which power is acquired and exercised by certain individuals or groups
B) the social institution that ensures that a society will be maintained through its production, distribution, and consumption of goods and services
C) the independent workings and interests of political and economic systems
D) the collection of people and organizations who serve as a watchdog to the American government

Question 13

Which of the following best defines political economy?

A) the social institution through which power is acquired and exercised by certain individuals or groups
B) the social institution that ensures that a society will be maintained through its production, distribution, and consumption of goods and services
C) the independent workings and interests of political and economic systems
D) the collection of people and organizations who serve as a watchdog to the American government

Question 14

According to the text, the three major economic systems present in modern societies are

A) capitalism, socialism, and mixed economies.
B) capitalism, communism, and mixed economies.
C) capitalism, Marxism, and mixed economies.
D) socialism, communism, and mixed economies.

Question 15

The economic system characterized by public ownership of the means of production, the pursuit of collective goals, and centralized decision making is known as

A) capitalism.
B) socialism.
C) Marxism.
D) communism.

Question 16

Which of the following best defines primary sector production?

A) the processing of raw materials into finished products
B) the extraction of raw materials and natural resources from the environment
C) workers providing services rather than goods as their primary source of livelihood
D) work in such areas as transportation, communication, education, real estate, and advertising

Question 17

Which of the following best defines secondary sector production?

A) the processing of raw materials into finished products
B) the extraction of raw materials and natural resources from the environment
C) workers providing services rather than goods as their primary source of livelihood
D) work in such areas as transportation, communication, education, real estate, and advertising

Question 18

Tertiary sector production is

A) processing of raw materials into finished products.
B) extraction of raw materials and natural resources from the environment.
C) workers providing services rather than goods as a primary source of livelihood.
D) production that occurs in industrial economies.

Question 19

Primary sector production is mainly found in which type of economy?

A) preindustrial
B) industrial
C) post-industrial
D) high-tech

Question 20

A large-scale business organization that is headquartered in one country but operates in many countries is known as a

A) mixed economy.
B) transnational.
C) corporate welfare.
D) oligopoly.

Question 21

A monopoly

A) exists when a single firm controls an industry and accounts for all sales in a specific market.
B) is a large-scale business organization that is headquartered in one country but operates in many countries, which has the legal power to enter into contracts, buy and sell property, and engage in other business activity.
C) is a corporation comprised of a small number of companies or suppliers who control an entire industry or service.
D) is not held accountable by the government and regulatory agencies of the country in which it operates.

Question 22

An oligopoly

A) exists when a single firm controls an industry and accounts for all sales in a specific market.
B) is a large-scale business organization that is headquartered in one country but operates in many countries, which has the legal power to enter into contracts, buy and sell property, and engage in other business activity.
C) is a situation in which a small number of companies or suppliers control an entire industry or service.
D) is not held accountable by the government and regulatory agencies of the country in which it operates.

Question 23

Which of the following statements regarding the federal bureaucracy is true?

A) Elected officials are increasingly making more important decisions about public policy than the workers in the federal bureaucracy.
B) The federal bureaucracy shrank during the Great Depression.
C) The federal bureaucracy employs fewer than 1 million people.
D) Neither Republican nor Democratic administrations have been able to establish control over the federal bureaucracy.

Question 24

Which of the following statements regarding the military-industrial complex is true?

A) Military contractors who receive contracts from the Defense Department are prohibited by law from serving on advisory committees that recommend what weapons should be ordered.
B) This complex has been referred to as a revolving door because people move from job to job within various sectors of the military and corporations.
C) Concern about the far-reaching effects of the complex has diminished since World War II, as more people began to view defense expenditures as a source of economic development.
D) A societal focus on military ideals and an aggressive preparedness for war has decreased over time.

Question 25

In which model of government do political leaders make decisions on behalf of the people?

A) power elite
B) peace state
C) pluralist
D) paternalistic

Question 26

Which of the following approaches argue that problems in politics and the economy can be remedied by repairing the specific elements of the system that are creating the problems?

A) power elite
B) minimalist
C) dialectical
D) functionalist

Question 27

According to G. William Domhoff, the ruling class in the United States

A) will be the group most able to control digital democracy in the future.
B) is composed of leaders at the top of business, the executive branch of the government, and the military.
C) influences the political process through campaign donations, PACs, and appointments to powerful governmental committees and presidential commissions.
D) has little control over the global political economy.

Question 28

In the elite model

A) power is concentrated in the hands of a small group of people.
B) the masses have the power to overthrow the elites but are lazy and passive.
C) media is a tool of the masses that continually points out the failings of the elites.
D) the system is the problem.

Question 29

Top-tier civil service bureaucrats who have a strong power base and play a major role in developing and implementing government policies and procedures are known as

A) permanent government.
B) special-interest groups.
C) political action committees.
D) the military-industrial complex.

Question 30

The difference between a candidate's number of votes from women and men is known as

A) the soft money.
B) voter apathy.
C) bureaucracy.
D) the gender gap.

Question 31

Which of the following statements most accurately describes special-interest groups in the United States?

A) Most special-interest groups are concerned about the general welfare of the United States.
B) Unlike lobbyists, special-interest groups do not have undue influence on political decisions and the outcome of elections.
C) Special-interest groups typically represent specific industries and make contributions to candidates who will protect their interests.
D) Most employed people are represented by a special-interest group or a Political Action Committee such as a union.

Question 32

The soft money loophole refers to contributing money to a

A) specific cause instead of to a political party.
B) political party instead of to a specific candidate.
C) party honoring a candidate rather than directly to the candidate's campaign.
D) political group that vows to fight corruption rather than a candidate's campaign.

Question 33

Corporate welfare

A) did not happen in the United States until the second decade of the 21^st century.
B) occurs when the government financially helps private corporations.
C) is controlled by interlocking corporate directorates.
D) has decreased over time.

Question 34

According to the text, which of the following two factors contribute to individual and family debt in the United States?

A) economic hardship and political campaign donations
B) availability of credit and insufficient employment
C) corporate welfare and lotteries
D) taxation for welfare programs and schools

Question 35

Countries such as Japan, Singapore, Saudi Arabia, Sweden, Great Britain, and France have

A) mixed economies.
B) capitalist economies.
C) socialist economies.
D) communist economies.

Question 36

Which of the following statements about capitalism is false?

A) Capitalism is based on the right of individuals to own property and to "buy" people's labor.
B) The primary motivation of capitalism is supposed to be the collective good of all citizens.
C) Capitalism is based on the belief that people should be able to maximize their individual gain through personal profit.
D) Capitalism is based on a lack of government intervention in the marketplace.

Question 37

Which of the following statements regarding politics and the economy is true?

A) Because political decisions are typically made on a nation-by-nation basis, many of these decisions do not affect the lives and economic status of people in other nations.
B) Many political decisions affect the lives and economic status of people in other nations.
C) The economy refers to the interdependent workings and interests of political and economic systems.
D) The political economy is the social institution that ensures that a society will be maintained through its production, distribution, and consumption of goods and services.

Question 38

In 2006, the federal government spent $92 billion in direct and indirect subsidies to businesses and private-sector corporate entities. Some corporations that received millions in taxpayer-funded benefits induced Boeing, Xerox, IBM, Motorola, and Dow Chemical and General Electric. These are examples of

A) corporate buyouts.
B) corporate assistance.
C) corporate welfare.
D) corporate lobby.

Question 39

A close friend tells you that he believes that democracy is impossible in our society because the government works only for the wealthy and elite people. Your friend can best be described as a

A) member of the power elite.
B) functionalist.
C) conflict theorist.
D) member of a political party.

Question 40

Demonstrate your understanding of the concept of underground economies by defining this term and offering several examples of people taking part in an underground economy. Why do so many people around the world participate in underground economies?

Question 41

Trace the concentration of wealth in the United States, from its earliest stage through advanced monopoly capitalism.

Question 42

Discuss national and consumer debt. Describe the extent to which the United States is in debt and the extent to which consumers are in debt. Propose ways that consumer debt could be reduced, and evaluate the extent to which you think the ways that you propose for reducing debt are likely to reduce it.

Question 43

Evaluate the prevalence of voter apathy in America. Describe the extent to which voter apathy exists, explain the causes of voter apathy, and explain if and why voter apathy is a problem.

Question 44

Write a letter to an elected official enumerating all the problems you see with federal bureaucracy. Make sure to propose some solutions in your letter as well.