Deck 14: The Economy

Question 1

For the first time, it was no longer necessary for everyone to work at producing food in

A) pastoral and horticultural societies.
B) industrial societies.
C) hunting and gathering societies.
D) subsistence economies.

Answer 1

A

Question 2

Sarah stopped at the supermarket to quickly pick up some milk, bread, cat litter, and a tomato. When she saw the total come up on the screen, she swore that it was a dollar higher than it should be. But no, the prices were all correct on her receipt. It was just that they had all gone up. So had the cost of clothing, cars, and most everything else. This is called

A) the gold standard.
B) inflation.
C) increased purchasing power of the dollar.
D) stored value.

Answer 2

B

Question 3

A _____ is the means by which people place a value on goods and services in order to make an exchange; for example, currency, gold, and silver.

A) barter
B) deposit receipt
C) medium of exchange
D) currency

Answer 3

C

Question 4

Which of the following statements about the gold standard is true?

A) All economies follow it.
B) It permits countries to print as much paper money as they want.
C) The United States follows it.
D) In 1971, the United States dropped the gold standard.

Question 5

In what century was the steam engine invented?

A) Seventeenth
B) Eighteenth
C) Nineteenth
D) Twentieth

Question 6

To _____ is to directly exchange one item for another.

A) barter
B) purchase
C) use fiat money
D) use electronic gold

Question 7

A deposit receipt or a currency has a(n) _____, which is defined as the goods stored and held in reserve that back up a receipt or currency.

A) barter value
B) gross domestic product (GDP)
C) stored value
D) inflation reserve

Question 8

Currency is

A) gold.
B) fiat money.
C) e-cash.
D) paper money.

Question 9

The amount of goods and services that a nation produces is known as the

A) gross domestic product.
B) deposit receipt.
C) total output.
D) medium of exchange.

Question 10

Fiat money is

A) backed by stored value.
B) a type of inflation.
C) not backed by stored value.
D) a form of barter.

Question 11

A society's view of children as having the right to be educated and to be spared from adult burdens accompanies

A) economic prosperity.
B) child-labor laws.
C) poverty.
D) democracy.

Question 12

Hunting and gathering societies had a(n) _____ economy, living off the land and with little or no surplus.

A) subsistence
B) modern
C) pastoral
D) industrial

Question 13

A system of producing and distributing goods and services is known as a(n)

A) subsistence economy.
B) market.
C) economy.
D) hunting and gathering society.

Question 14

_____ is any item, whether sea shells or gold, that serves as a medium of exchange.

A) Money
B) The gold standard
C) Barter
D) Stored value

Question 15

The cost of an item purchased is electronically withdrawn from the purchaser's bank account using a

A) credit card.
B) deposit receipt.
C) fiat currency.
D) debit card.

Question 16

Governments ____ the development of e-cash.

A) provide grants for
B) encourage
C) dislike
D) are unaware of

Question 17

Carlos often did not have much money with him, but he shopped anyway, using a _____, which is a device that allows its owner to buy goods and be billed for them later.

A) debit card
B) credit card
C) deposit receipt
D) currency

Question 18

The marriage of biology and economics in the _____ society is likely to yield greater surpluses than before and more extensive trade.

A) industrial
B) biotech
C) hunter-gatherer
D) new agricultural

Question 19

The _____ ushered in agricultural societies.

A) use of child labor
B) plow
C) subsistence economy
D) steam engine

Question 20

A _____ is used as a form of money. It states that a certain amount of goods are on deposit in a warehouse or bank.

A) gold standard
B) deposit receipt
C) currency
D) credit card

Question 21

With _____, top companies form a network that can be likened to a spider's web.

A) multinational corporations
B) interlocking directorates
C) socialist governments
D) an excess of allegiance to workers and the United States

Question 22

_____ take(s) the view that capitalist and socialist economic systems, in adopting features of one another, will create a mixed economic system.

A) State capitalism
B) Convergence theory
C) Market forces
D) Divergence theory

Question 23

The United States has adopted

A) many socialist practices.
B) convergence theory, which is being promoted through television ads.
C) market-force-blind capitalism.
D) no socialist practices.

Question 24

In laissez-faire capitalism,

A) the government controls the market.
B) central committees control the market.
C) the government does not interfere in the market.
D) the public controls the market.

Question 25

When an entire industry is controlled by a single company, this is called

A) state capitalism.
B) laissez-faire capitalism.
C) a monopoly.
D) pure capitalism.

Question 26

The main criticism leveled against capitalism is that it

A) focuses too much on the public good.
B) leads to social equality.
C) does not respect individual rights.
D) leads to social inequality.

Question 27

Democratic socialism is

A) an economic system where only individuals own businesses.
B) a hybrid economic system.
C) pure capitalism.
D) an economic system where only the government owns businesses.

Question 28

A stockholder's revolt is actually a case of the _____ rebelling at the control of the _____.

A) owners; workers
B) owners; stockholders
C) workers; stockholders
D) workers; owners

Question 29

At least two corporations-International Telephone & Telegraph Company (ITT) and Royal Dutch Shell-have been involved in

A) trying to discourage capitalism.
B) assassinations.
C) trying to artificially keep the wages of workers high.
D) schemes to distribute the bulk of their earnings to the global poor.

Question 30

Capitalism responds to

A) market forces.
B) edicts from central planning committees.
C) the public, which owns the means of production.
D) pure socialism.

Question 31

A transaction in e-gold is actually the transfer of ownership of a specified amount of _____ stored in a bank vault.

A) silver
B) gold
C) paper money
D) euros

Question 32

Corporations dominate an economy in

A) a stockholder revolt.
B) mechanical solidarity.
C) corporate capitalism.
D) corporate neosocialism.

Question 33

The United States follows _____, where private citizens own the means of production and pursue profits, but within a system of laws to protect the welfare of the population.

A) state socialism
B) state capitalism
C) laissez-faire capitalism
D) pure capitalism

Question 34

A corporation is

A) unable to be sued.
B) very distinct legally from a person.
C) global division of labor.
D) legally treated as a person.

Question 35

_____ presidents of the United States have helped arrange sales of planes and bombs to other countries.

A) No
B) Only Republican
C) Republican and Democratic
D) All

Question 36

One important feature of socialism is

A) encouragement of competition.
B) profit-making.
C) the elimination of competition.
D) distribution of goods according to people's ability to pay.

Question 37

_____ believe(s) that the new global division of three main trading blocks benefits the multinational giants as well as the citizens of the world.

A) Conflict theorists
B) Functionalists
C) Durkheim
D) Small town residents

Question 38

In _____, the means of production are privately owned.

A) socialism
B) convergence theory
C) laissez-faire socialism
D) capitalism

Question 39

_____ solidarity is the unity that people feel as a result of performing the same or similar tasks.

A) Durkheimian
B) Mechanical
C) Organic
D) Forced

Question 40

In Durkheim's _____ solidarity, we all depend on others to fulfill their jobs.

A) management
B) organic
C) corporate
D) stockholder

Question 41

Researchers have found that when it comes to working, women are more likely to _____, while men are more likely to _____.

A) prefer to work alone; prefer to work in teams
B) prefer to work longer hours; prefer to work shorter hours
C) prefer to work in teams; prefer to work alone
D) emphasize power; emphasize encouragement

Question 42

The three largest multinational corporations are headquartered in

A) the United States.
B) the United Kingdom.
C) Japan.
D) China.

Question 43

The exchange of goods and services in the underground economy

A) is reported to the government.
B) escapes taxes.
C) is always illegal.
D) is heavily taxed.

Question 44

Stephen Schwarzman, one of the members of the global superclass, stated that _____ people make the world's major decisions.

A) 5 to 10
B) 20 to 50
C) 100 to 250
D) 2000 to 5000

Question 45

Compare capitalism and socialism in terms of ownership of the means of production, competition, and the profit motive.

Question 46

As _____ do business across national borders, they become detached from the interests and values of their country of origin.

A) small businesses
B) all corporations
C) multinational corporations
D) a small minority of corporations

Question 47

The gap between rich and poor Americans is

A) greater than it has been in generations.
B) narrowing.
C) almost a thing of the past.
D) about the same as it has always been.

Question 48

fiat currency, coins, barter, debit cards, currency, deposit receipts, e-cash.

Question 49

The number of women working for wages

A) decreases with their level of education.
B) increases with their level of education.
C) is moderately decreasing today.
D) has plummeted in recent years.

Question 50

Describe the "quiet revolution."

Question 51

Describe how white-collar work, blue-collar work, and farming have changed proportions in the U.S. economy from 1900 to the present.

Question 52

Back in 1973, which six characteristics did Daniel Bell ascribe to the postindustrial society?

Question 53

In a way, _____ is reversing the Industrial Revolution's shift from working at home to working in an office.

A) the underground economy
B) telecommuting
C) the quiet economy
D) the connection to seasonal rhythms

Question 54

The poorest fifth of the U.S. population receives _____ of the nation's income.

A) 1%
B) 3%
C) 10%
D) 33%

Question 55

Of 27 countries around the world, the percentage of women employed in the United States ranks

A) first.
B) fourth.
C) sixteenth.
D) twenty-seventh.