Deck 13: The Economy

Question 1

The scientific management of work is referred to as ________.

A) Taylorization
B) mechanization
C) bureaucratization
D) industrial efficiency

Answer 1

A

Question 2

Identify which of the following is true of the U.S. economy.

A) It has always been based on the principles of capitalism.
B) It is far removed from a free enterprise system.
C) It is the only example of true capitalism.
D) Both a and b

Answer 2

D

Question 3

Identify which of the following is not evidence of the difficulties associated with industrialization.

A) Work in factories is sometimes difficult, often tedious, and usually boring.
B) There is always the threat of lowered productivity and worker unrest.
C) Workers exploit employers by gaining education and training at their expense and then moving on.
D) Owners use various tactics to counteract potential problems and maintain high productivity.

Answer 3

C

Question 4

When an individual serves on the board of two or more companies, it is referred to as ________.

A) an indirect interlock
B) a direct interlock
C) intercorporate cooperation
D) vertical integration

Question 5

________ is necessary under socialism since representatives must be answerable and responsive to the wishes of the public they serve.

A) Totalitarianism
B) State control
C) Democracy
D) The military state

Question 6

The core institutions in society are the ________.

A) economy and education
B) polity and religion
C) family and economy
D) economy and polity

Question 7

________ is a feature of socialism, referring to the idea that social relations should be characterized by cooperation and a sense of collective belonging rather than by conflict and competition.

A) Democracy
B) Egalitarianism
C) Community
D) Public ownership of the means of production

Question 8

________ is necessary for true socialism and refers to equality of opportunity for self-fulfillment of all, equality rather than hierarchy in decision making, and equality in sharing the benefits of society.

A) Representative government
B) Military control
C) Laissez-faire policy
D) Egalitarianism

Question 9

________ are social arrangements that channel behavior in prescribed ways in the important areas of social life.

A) Institutions
B) Norms
C) Laws
D) Roles

Question 10

Identify which of the following is a characteristic of megamergers.

A) They increase the centralization of capital, increase corporate debt, and raise prices.
B) They increase the power of huge corporations over workers, unions, and government and reduce the number of jobs.
C) They diminish the benefits to local communities, as superlarge companies are unlikely to focus as intensely as smaller ones on support for local neighborhoods.
D) All of the above

Question 11

Identify which of the following is not associated with an increasing concentration of private wealth.

A) Bill Gates was the wealthiest individual in 2010 at about $54 billion, followed by Warren Buffett with $45 billion.
B) The middle class has expanded as members invest heavily in the stock of large corporations.
C) The DuPont family controls ten corporations, each worth billions of dollars, including General Motors, Coca-Cola, and United Brands.
D) The Rockefellers control five of the world's twelve largest oil companies and four of the biggest banks.

Question 12

For true capitalism to work, there must be a fourth condition, ________, which is a government policy that allows the marketplace to operate unhindered with a minimum of government interference.

A) caveat emptor
B) laissez-faire
C) mercantilism
D) imperialism

Question 13

Which of the following is not a condition that must be present for socialism to exist?

A) public ownership of the means of production
B) democracy
C) egalitarianism
D) a military state

Question 14

Critics argue that ________ promotes inequality and a host of social problems because the object is profit, not enhancing the human condition.

A) socialism
B) communism
C) capitalism
D) welfare

Question 15

Which of the following is not a consequence of the trend toward megamergers?

A) It increases competition between capitalists.
B) It increases the power of huge corporations over workers, unions, and governments.
C) It reduces the number of jobs.
D) It is unproductive.

Question 16

A ________ refers to the situation when four or fewer firms supply 50 percent or more of a particular market.

A) shared monopoly
B) contradiction of capitalism
C) unanticipated consequence
D) None of the above

Question 17

________ is an economic system in which the means of production are owned in common by the people for their collective benefit.

A) Socialism
B) Capitalism
C) Communism
D) The free market

Question 18

In capitalist societies, ________ is the mechanism for determining what is produced and at what price. It is the mechanism that keeps individual profit seeking in check.

A) competition
B) government oversight
C) consumer protection
D) private ownership

Question 19

The extent of the concentration of wealth among the major U.S. corporations is evident in the fact that less than one percent of all corporations account for ________ of the private-sector output.

A) 60 percent
B) 70 percent
C) 80 percent
D) 90 percent

Question 20

Identify which of the following is not a key condition that must be present for pure capitalism to exist.

A) private ownership of the means of production
B) government protectionism
C) personal profit
D) competition

Question 21

An example of how the U.S. economy is NOT purely capitalistic would be________.

A) taxes are levied to raise money for the common good
B) the government monitors the safety of food and drugs
C) protection of the civil rights of women and minorities
D) all of the above

Question 22

The socialist principle of ________ opposes the heart of capitalism.

A) community
B) egalitarianism
C) planning
D) democratism

Question 23

Critics of democratic socialism argue that

A) it minimizes individual freedom.
B) it is inefficient.
C) taxes are high.
D) all of the above

Question 24

The use of lie detectors to assess worker loyalty, the use of psychological and drug tests to screen applicants for work, and the use of closed-circuit television and two-way mirrors are examples of ________.

A) hierarchical control
B) technical control
C) scientific management
D) None of the above

Question 25

Identify which of the following is not a factor contributing to discrimination in the workplace.

A) Women and minorities have long been targets of discrimination in U.S. industries.
B) The Equal Employment Opportunity Commission has no legal authority to prosecute for discrimination.
C) Charges of discrimination center on hiring policies, seniority rights, restricted job placement, limited opportunities for advancement.
D) The segmented labor market and capitalist patriarchy perpetuate inequalities.

Question 26

________ refers to male dominance in work-related roles and is reflected in the fact that men tend to make the rules and enforce them, and they receive unequal and greater rewards.

A) Corporate paternalism
B) Capitalist patriarchy
C) Seniority system
D) Corporate tenure

Question 27

Marginal firms where product demand is unstable, jobs are characterized by poor working conditions, low wages, few opportunities for advancement, and little job security characterize the ________ of the labor market.

A) primary sector
B) tertiary sector
C) dominant sector
D) secondary sector

Question 28

________ refers to increasing worker efficiency by breaking down work into very specialized tasks, standardization of tools and procedures, and speeding up repetitive work.

A) Hierarchical control
B) Scientific management
C) Technical control
D) None of the above

Question 29

Industrialized societies organize their economic activities according to either ________ or ________.

A) democracy / aristocracy
B) capitalism / socialism
C) fascism / capitalism
D) communism / socialism

Question 30

A sweatshop is ________.

A) a substandard work environment where workers are paid less than the minimum wage, are not paid overtime premiums, and often work in violation of other labor laws
B) a plant where athletic clothing is manufactured
C) a factory where there are few technological advances, and employees work hard but under safe conditions
D) a factory where supervisors use scientific techniques, video monitoring, and computers to oversee work

Question 31

According to Karl Marx, in capitalism, worker alienation occurs because ________.

A) they do not have any control over their labor
B) they are manipulated by managers
C) they tend to work in large, impersonal settings
D) all of the above

Question 32

Identify which of the following are features Michael Parenti uses to describe the fundamental logic of capitalism.

A) They are constantly devising ways to eliminate jobs.
B) They are not dedicated to protecting the family or traditional life.
C) Their system is the most relentless in human history in destroying homegrown cultures.
D) All of the above

Question 33

The government policy that allows the marketplace to operate unhindered is called________.

A) laissez-faire
B) monopolistic free trade
C) egalitarianism
D) Taylorization

Question 34

_____ refers to the separation of human beings from each other, from themselves, and from the products they create.

A) Anomie
B) Irrational consequences
C) Alienation
D) None of the above

Question 35

Large, bureaucratic organizations with stable production and sales, jobs requiring developed skills, and good pay are characteristic of the ________ of the labor market.

A) secondary sector
B) primary sector
C) tertiary sector
D) dominant sector

Question 36

The principle of egalitarianism refers to________.

A) the necessity for the representative to be responsive to the constituent
B) equality of opportunity for the self-fulfillment of all
C) hierarchy in decision-making
D) social relations characterized by cooperation

Question 37

Identify which of the following is not true of how the labor market reinforces racial, ethnic, and gender divisions.

A) White males dominate in the upper tier of the primary sector.
B) White females dominate in the lower tier of the primary sector.
C) Blacks and Hispanics predominate in the secondary sector.
D) Government enforces quotas that move employees out of the secondary and into the primary sector.

Question 38

The socialist principle of ________ means that the representatives of the state must be answerable and responsive to the wishes of the public they serve.

A) egalitarianism
B) community
C) planning for common purposes
D) democratism

Question 39

Contrary to classic economic theory, huge corporations________.

A) respond to the demands of the market
B) are based on competition with other companies
C) control demand
D) ignore the demands of the market

Question 40

In a purely capitalist society________.

A) individuals would be constrained by law to maximize their personal gains
B) there would be no public ownership of any potentially profitable activity
C) the utilities would be owned publicly
D) competition would be unable to keep profit-seeking in check

Question 41

According to Eitzen and Baca-Zinn, ________ is central to the human experience.

A) profit
B) hedonism
C) work
D) family

Question 42

Although sweatshops occur in various types of manufacturing, they occur most frequently in the ________ industry.

A) dyestuffs
B) meatpacking
C) garment
D) retailing

Question 43

Alienation on a personal level shows itself by________.

A) the use of cheaper labor
B) unionization
C) absenteeism
D) walkouts

Question 44

Certain jobs, such as ________, have been prounion while other jobs, like ________, have been nonunionized.

A) white collar / blue collar
B) manufacturing / service
C) factory / transportation
D) teaching / research

Question 45

Scientific management emphasized specialization, which had the effect of________.

A) making workers susceptible to automation
B) increasing hourly wages
C) enlarging the worker's skills
D) diminishing the meaninglessness of work

Question 46

One significant fact of the dual labor market is that

A) placement in one of these segments corresponds with social class,
B) secondary sector employment is characterized by higher wages than in the primary market,
C) ethnic and racial divisions are diminished,
D) white males predominate in the secondary sector,

Question 47

Approximately ________ workers die each year from on-the-job injuries.

A) 1,000
B) 6,000
C) 10,000
D) 12,000

Question 48

As a result of the decline in union membership, ________.

A) unions have given back many of the gains they made in the 1960s and 1970s
B) workers have lost real wages and benefits
C) the workplace has become less safe
D) all of the above

Question 49

Public opinion has turned against unions because________.

A) some of them are anti-democratic
B) of the pro-union policies of recent Republican Presidents
C) of the pro-labor activities of recent appointees to the post of Secretary of Labor
D) of union reluctance to use strikes and walkouts

Question 50

The management tool of extortion refers to________.

A) the alienating effect of the workplace
B) the threat of reprisals as a response to worker demands
C) the risk of increasing productivity
D) the monitoring of workers by supervisors

Question 51

The hierarchical arrangement of the workplace controls workers________.

A) by increasing automation
B) by holding out the possibility of advancement for obedient rule followers
C) by using lie detectors and psychological testing
D) by increasing worker autonomy

Question 52

In 2009, the official unemployment rate reached __________.

A) 20 percent
B) 10 percent
C) 9 percent
D) 2 percent

Question 53

According to economist Lester Thurow, ________.

A) capitalism is not concerned with how wealth and income are distributed
B) a concern for fairness does exist
C) those who do not produce are offered compensations
D) the market does not compensate those who do produce

Question 54

A mechanism in the U.S. economy that perpetuates inequalities in the job market by race, class, and gender is

A) alienation
B) the Clayton Act
C) the segmented labor market
D) the union shop

Question 55

The 1914 passage of the ________ Act made it illegal for a person to serve on the corporate board of two companies that were in competition with each other.

A) Wagner
B) Interstate Commerce
C) Mann
D) Clayton

Question 56

The most common contemporary technology for worker control is________.

A) lie detectors
B) drug tests
C) telephone taps
D) the computer

Question 57

According to Karl Marx, the most significant contradiction that doomed capitalism was________.

A) alienation
B) inevitability of monopolies
C) inequality
D) concentration of private wealth

Question 58

Migrant farm workers have a life expectancy ________ years below the national average.

A) five
B) ten
C) twenty
D) thirty

Question 59

The shift in production from the United States to outside the country has resulted in________.

A) an increase in semi-skilled jobs in the United States
B) decreased unemployment
C) reduction in welfare costs
D) increased discontent among the working class

Question 60

S. corporations are shifting their assets outside the United States because________.

A) rate of profit tends to be higher abroad
B) resources necessary for production tend to be cheaper in other nations
C) overseas countries tend to be non-union and low-wage
D) all of the above

Question 61

The economy of the United States is purely capitalistic.

Question 62

A major consequence of the corporate scandals in 2008 was __________.

A) the loss of public trust
B) the increase in security measures
C) the permanent collapse of the stock market
D) the elimination of the U.S. underclass

Question 63

The middle class is _________ than in years past.

A) smaller in size
B) the same in size
C) larger in size
D) double in size

Question 64

For the majority of socialists the goal is absolute equality, rather than relative equality, with some acceptable disparities in living standards.

Question 65

Egalitarianism is necessary to true socialism and refers to equality of opportunity for self-fulfillment of all, equality rather than hierarchy in decision-making, and equality in sharing the benefits of society.

Question 66

Private ownership of the means of production is a necessary condition for socialism to exist.

Question 67

Competition is the mechanism that keeps individual profit seeking in check under pure capitalism.

Question 68

The reserve army of the unemployed is disproportionately composed of________.

A) students
B) housewives
C) migrant workers
D) people of color

Question 69

Public ownership of the means of production and a goal of serving the public is a central part of capitalism.

Question 70

Not included in the unemployment category are those who are________.

A) in school
B) disabled
C) retired
D) all of the above

Question 71

A commonly-held belief about the positive consequence of unemployment is that ________.

A) it reduces inflationary pressures
B) depressions are less likely
C) social service workers benefit
D) it motivates the workforce to be grateful for employment

Question 72

Industrialized societies organize their economic activities according to either capitalism and socialism.

Question 73

Government protectionism is a key condition that must be present for pure capitalism to exist.

Question 74

The capitalist philosophy dating back to Adam Smith argues that

A) business needs to be regulated.
B) the government should punish wrong-doers in business.
C) the government should stay out of economic affairs.
D) industry is based on a rational set of principles.

Question 75

According to Karl Marx, one of the contradictions of capitalism that will bring its downfall is________.

A) the collapse of the bourgeoisie
B) the rise of the lumpenproletariat
C) the falling rate of profit
D) the emphasis on laissez-faire economics

Question 76

The Great Recession began in _________ and ended in _________.

A) 2007/2010
B) 2003/2004
C) 2000/2002
D) 1999/2005

Question 77

Laissez-faire, which is a government policy that allows the marketplace to operate unhindered with a minimum of government interference, must be present for true capitalism.

Question 78

Democracy is not a part of socialism, as representatives are answerable to no one and respond only to the ruling class.

Question 79

Institutions are interrelated sets of normative elements-norms, values, and role expectations-that have been devised and passed on through generations so that society's perpetually unfinished business can be attended to.

Question 80

The undemocratic nature of U.S. society is illustrated by________.

A) central planning
B) voting patterns
C) Presidential elections
D) lack of central planning