Deck 11: The Economy

Question 1

Because resources and wages are cheaper in many other nations, U.S. corporations are shifting more and more of their total assets outside of the United States. As of 2009, _____ of the top 15 multinational companies were U.S. based companies.

A) all
B) three
C) six
D) 12

Answer 1

six

Question 2

Capitalists argue that the profit motive, private ownership, and competition will achieve _____, although this is not currently the case in the United States, where many workers live below the poverty line.

A) the greatest good for the greatest number
B) the greatest good for the most disadvantaged
C) a balance between the "haves" and "have nots"
D) social equality and opportunity for class advancement

Answer 2

the greatest good for the greatest number

Question 3

Which of the following is one of the negative consequences of megamergers?

A) They increase the centralization of capital, reducing competition and raising prices for consumers.
B) They increase the power of unions for the workers who are employed by these companies.
C) They eliminate the corporate debt that finances the government and its programs.
D) They create overproduction in terms of new plants, products, and jobs.

Answer 3

They increase the centralization of capital, reducing competition and raising prices for consumers.

Question 4

Bob is on the board of Megagiant Corp. and Karen is on the board of Supersize Inc. Both Bob and Karen serve on the board of Mega-Superbank. This type of interlocking directorate is called a(n)

A) direct interlock.
B) indirect interlock.
C) conflict of interest.
D) shared monopoly.

Question 5

_____ refers to an economic system in which the means of production are owned by the people for their collective benefit.

A) Capitalism
B) Totalitarianism
C) Libertarianism
D) Socialism

Question 6

A shared monopoly occurs when four or fewer firms supply 50% or more of a particular market, performing much as a monopoly or cartel would. Another term for this is

A) oligochaete.
B) oligoclase.
C) oligarchy.
D) oligopoly.

Question 7

The late political observer Ivins said: "Capitalism ... is a dandy system for creating wealth, but it doesn't do squat for _____. No reason to expect it to-that's not its job."

A) competition
B) private enterprise
C) social justice
D) personal empowerment

Question 8

The chapter states that inequality is endemic to capitalism. For example, of the 15,000 commercial U.S. banks, the largest 50 hold _____ of all assets.

A) 77%
B) more than 50%
C) more than 33%
D) 10%

Question 9

Which of the following is the term for the linkage between corporations that results when an individual serves on the board of directors of two companies or when two companies each have a director on the board of a third company?

A) Conflict of interest
B) Oligopoly
C) Interlocking directorates
D) Monopoly

Question 10

Today, 1% of all corporations produce _____ of the private-sector output.

A) almost 10%
B) nearly 50%
C) more than 80%
D) 99%

Question 11

The chapter points out that work can have its dark side. The distribution of work and how it is rewarded are major sources of _____ in society.

A) capitalism
B) advancement
C) inequality
D) leveling the playing field

Question 12

Which term refers to a system of government based on controlling the people of a country in a very strict way with complete power that cannot be opposed?

A) Totalitarian
B) Capitalist
C) Democratic
D) Socialist

Question 13

One condition of true capitalism is a government policy of _____ that allows the marketplace to operate without intervention.

A) laissez-faire
B) benign neglect
C) the balance of powers
D) progressivism

Question 14

The major discrepency between capitalism in its ideal form and capitalism as it is practiced in the United States is

A) huge corporations dominate the economy by controlling demand, rather than responding to the demands of the market.
B) huge corporations dominate the economy by responding to market demands without government intervention.
C) laissez-faire government policies allow huge corporations to fail, putting white-collar employees out of work.
D) laissez-faire government policies have been replaced by tight government regulation of business in the wake of the 2008 economic crash.

Question 15

Which of the following is NOT one of the three principles of capitalism?

A) Private ownership
B) Equal opportunity
C) Personal profit
D) Competition

Question 16

Mr. Cabot serves on the boards of both the Big Bank of Money and the Super Soda Company. This type of interlocking directorate is a(n)

A) direct interlock.
B) indirect interlock.
C) interlock conflict.
D) shared monopoly.

Question 17

Which term refers to a belief in equality of opportunity for the self-fulfillment of all, equality rather than hierarchy in decision making, and equality in sharing the benefits of society?

A) Laissez-faire
B) Socialism
C) Totalitarian
D) Egalitarianism

Question 18

More than 130 years ago, Karl Marx hypothesized that free enterprise would result in some firms becoming bigger and bigger as they eliminate their opposition or absorb smaller competing firms, resulting in the existence of _____ in each of the various sectors of the economy.

A) companies
B) monopolies
C) regulation
D) market coverage

Question 19

With the advent of the _____, more and more families left agrarian life, moved to cities, and worked in factories.

A) Socialist Revolution
B) Age of Englighment
C) Back-to-the-Land Movement
D) Industrial Revolution

Question 20

_____ provides individuals with their social identity, economic resources, and social location, it dominates their time, and it is a primary source of life's meaning.

A) Education
B) Work
C) Politics
D) Capitalism

Question 21

In 2005, about 20% of home loans were _____, meaning they were loans sold to low-income people who had little chance of paying their mortgages, often under predatory terms that were especially unfavorable to the unsuspecting borrowers.

A) subprime
B) triple-A rated
C) fixed-rate
D) refinanced

Question 22

Even before the economic crisis of 2007 to 2009, employees in the United States were working about _____ more hours per year than their European counterparts.

A) 70
B) 249
C) 350
D) 1,970

Question 23

Research in 2009 showed that union members are 59% more likely to have _____ than their nonunion counterparts.

A) job sharing opportunities
B) stock options
C) unemployment insurance
D) employer-provided health insurance

Question 24

In 2013, more than 30,000 charges of _____ discrimination were filed with the U.S. Equal Employment Opportunity Commission.

A) racial
B) reverse
C) sex
D) age

Question 25

Which term refers to repetitive work that is divided into very specialized tasks, using standardized tools and procedures, in order to maximize speed and efficiency?

A) Scientific management
B) Industrial revolution
C) Factory system
D) Systemization

Question 26

Which term refers to a substandard work environment where workers are paid less than the minimum wage, workers are not paid overtime premiums, and other labor laws are violated?

A) Sweat lodge
B) Workshop
C) Factory
D) Sweatshop

Question 27

Prior to the economic crisis of 2007 to 2009, the economy was already shifting away from manufacturing to services and information/knowledge. Tens of millions of mostly _____ jobs were lost permanently.

A) white-collar
B) women's
C) unionized
D) small business

Question 28

Scientific management was called by a term that based on the name of the concept's founder, who is

A) Henry Ford.
B) Frederick Taylor.
C) Karl Marx.
D) Adam Smith.

Question 29

In 2013, a spotlight on sweatshops occurred due to the collapse of a garment factory in _____ that killed more than 1,100 young women and child laborers.

A) Bangladesh
B) Los Angeles
C) South Korea
D) Afghanistan

Question 30

In addition to homeowners, _____ suffered during the housing bubble collapse and many faced eviction from their dwellings.

A) renters
B) small businesses
C) big banks
D) nursing home residents

Question 31

On August 26, 2014 (Women's Equality Day), the Teamsters Local 237 union in New York City won a historic gender-equity settlement for thousands of female _____, who earned about $7,000 less per year than their male counterparts.

A) construction workers
B) school safety agents
C) skilled factory workers
D) truck drivers

Question 32

When researchers from the UC-Berkeley's Human Rights Center and a Washington D.C.-based group stated that "New federal laws have been passed to combat these crimes … but much more needs to be done, especially at the local level," they were talking about launching a broad-based campaign against modern-day

A) racism.
B) slavery.
C) union busting.
D) feudalism.

Question 33

Minorities, especially _____, have the highest number of work-related deaths. Between 1992 and 2007, the rate of worker deaths for this group increased by 76%.

A) African Americans
B) Latinos
C) Asian Americans
D) Native Americans

Question 34

One of the functions of a hierarchical system in the workplace is to encourage obedience to rules by

A) rewarding innovative ideas from all levels of worker.
B) increasing workers' sense of pride in their accomplishments.
C) holding out the possibility of advancement as a reward.
D) ensuring that each worker is rewarded according to his or her contribution.

Question 35

According to Karl Marx, worker _____ occurs when workers do not have any control over their labor, are manipulated by managers, work in large impersonal settings, and work at specialized tasks.

A) advancement
B) satisfaction
C) apathy
D) alienation

Question 36

What forces combined in 2007 to bring about the worst economic downturn since the Great Depression of the 1930s?

A) Hurricane Katrina and the resulting bailout to homeowners
B) Bipartisan support of the wars in Iraq and Afghanistan
C) Predatory mortgage lending and irresponsible dealing on Wall Street
D) The election of the nation's first Black president and a Republican legislature

Question 37

Pregnant _____ have disproportionate numbers of miscarriages or babies with birth defects, apparently from exposure to nonionizing radiation.

A) dyestuffs workers
B) coal miners
C) video display terminal operators
D) workers in semiconductor factories

Question 38

Historically, _____ have been extremely important in changing the relationship between management and workers. By joining together, workers were able to challenge owners to increase wages, add benefits, provide worker security, and promote safety in the workplace.

A) hierarchies
B) employees
C) labor unions
D) professional organizations

Question 39

The effects of the burst housing bubble fell disproportionately on minorities. By 2009 some 1.5 million homes, owned mostly by _____, were lost through subprime foreclosures.

A) all minorities combined
B) Asian Americans
C) Latinos
D) African Americans

Question 40

Since the founding of the Occupational Safety and Health Administration (OSHA), workplace fatalities have

A) dropped by 62%.
B) risen by 43%.
C) risen by 34%.
D) dropped by 26%.

Question 41

Which of the following is NOT one of the challenges faced by today's recent college graduates?

A) Higher salaries
B) Higher unemployment rate
C) Greater student loan debt
D) Lower salaries

Question 42

In 2008 alone, individuals who had contributed to 401(k) retirement savings accounts for 20 years or more lost an average of _____ of value.

A) 5%
B) 10%
C) 20%
D) 25%

Question 43

A major source of bankruptcy for people in the United States is the inability to pay for _____, especially for people who lose this benefit because they lost their jobs.

A) their children's college tuition
B) catastrophic health care needs
C) vacations and luxury items
D) the high interest on credit card bills

Question 44

Around 40% of the homeless population were families, typically

A) single fathers with children.
B) single mothers with children.
C) married couples with teenage children.
D) single or married women responsible for aging parents.

Question 45

By early 2009, around 16.5 million children received _____, up 6.5% from the previous year. .

A) free school lunches
B) college scholarships
C) art and music education
D) health care

Question 46

According to research by Marquardt and Shinkle, stock market value declined by $7.3 _____ in 2008 alone.

A) thousand
B) million
C) billion
D) trillion

Question 47

Although the Great Recession technically ended in 2010, there are long-term consequences still being felt; for instance, governments at the local, state, and federal level

A) received large influxes of money by charging penalties to banks that had engaged in predatory lending practices.
B) spent large amounts of tax money on services for the newly homeless.
C) lost significant tax revenues, causing them to impose punitively high taxes.
D) lost significant tax revenues, causing them to face serious budget shortfalls.

Question 48

The Chicago Coalition for the Homeless found that in 2008, 22% of families seeking emergency shelter were

A) choosing to walk out on their underwater mortgages.
B) seeking shelter after a natural disaster.
C) homeless for the first time.
D) chronically homeless.

Question 49

Despite signs of economic recovery, the legacy of the Great Recession is _____ the U.S. economic system and the government's ability to address the economic difficulties faced by American families.

A) increased trust in
B) diminished trust in
C) increased dependence on
D) diminished dependence on